Fortunately, the path to reducing oil consumption by five percent (5%) through electric vehicles will be even less costly than it might seem. In addition to spending less on oil, we will also be spending less on electric vehicles since making more EVs will enable us to make EVs cheaper.
Wright’s Law states that, “for every cumulative doubling of units produced, costs will fall by a constant percentage.” Basically, the more we make of something the cheaper it gets. Prices get exponentially cheaper.
Theodore P. Wright developed the rule while studying airplane manufacturing in the 1930’s, but his rule applies to most goods.
Take television sets for example. As the following graph shows, over the years they have gotten much cheaper and better.
Declining cost of a TV Set – Source: Business Insider
The same phenomenon is happening with electric vehicles. The price of lithium-ion batteries has fallen exponentially over the decades as we’ve been making more of them. This is one reason why EVs have already become less expensive, and they will continue to get even cheaper the more of them we make.