Wright’s Law.
Wright found that every time total aircraft production doubled, the required labor time for a new aircraft fell by 20%. This has become known as "Wright's law". Studies in other industries have yielded different percentage values (ranging from only a couple of percent up to 30%), but in most cases, the value in each industry was a constant percentage and did not vary at different scales of operation. The learning curve model posits that for each doubling of the total quantity of items produced, costs decrease by a fixed proportion. Generally, the production of any good or service shows the learning curve or experience curve effect. Each time cumulative volume doubles, value-added costs (including administration, marketing, distribution, and manufacturing) fall by a constant percentage.
https://en.wikipedia.org/wiki/Experienc ... rve_effect
I do wonder where we are on that plot of costs for products like BEV’s, solar panels / domestic installations, and domestic electricity storage. Then we have commercial costs and profit taking that make production costs no more than a sideline (forget what it costs to make, what will the customer stand?) … as has ever been thus.
Through what range of values does Wright’s Law apply? Ultimately Wright’s Law must have limits or when sufficient of an item were made then it’s manufacturing cost would become zero, which is something that just doesn’t happen. ‘Educated opinion’, from Goldman Sachs, suggests that we’re approaching the percentage limit of cost reductions, and that considering years versus cost we’re looking at an annual cost reduction of circa 8% for the next five years (‘till 2030, so a drop of about 1/3 over five years).
We are approaching the tail-end of battery price reduction and eventually both the fixed costs of materials will emerge and virtually all the manufacturing and technical efficiencies will have already been gained - things will mature. When will battery prices pan-out and at what level? My guess is circa 2035 and a 50% price reduction on where we are in 2025, so from circa $90 per KwH to circa $45 per KwH, on a $100KwH battery that’s about a $4500 reduction, less than 1/10th the new price of the car.
https://www.goldmansachs.com/insights/a ... nt-by-2025
Are brand new electric cars going to get a lot cheaper? Possibly cheaper, drifting downwards, but (assuming European manufacturing costs) not a lot cheaper; as a percentage of vehicle cost the battery costs are now much less significant than they were, and - setting aside pressures for larger batteries to increase range - they are destined to be even less significant in the future. As per earlier graphs (*) the total cost of ownership of BEV’s has been either similar or less than that of ICE cars for circa five years and we’re now close / about there with (showroom/forecourt) price parity on new vehicles.
* page 29, RT 30 Sep 2025, 10:55am
Don’t fret, it’s OK to: ride a simple old bike; ride slowly, walk, rest and admire the view; ride off-road; ride in your raincoat; ride by yourself; ride in the dark; and ride one hundred yards or one hundred miles. Your bike and your choices to suit you.