EV Battery Prices To Plummet, Honda Double Range, Coke’s AI Remake

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We’re back at our desks after some time on the road. Today we’re talking about Honda’s plans to double EV range while reducing cost and size, a new study that says price parity between EV and ICE could come as soon as 2026, and the response to an AI-altered Coca-Cola ad.

Show Notes with links:

• Honda aims to double the driving range of its EVs by the late 2020s through the use of innovative all-solid-state batteries.
  • Research head Keiji Otsu describes the initiative as a “game-changer” that could redefine EV capabilities and consumer expectations.
  • A $277 million pilot production line in Japan is set to manufacture these advanced batteries, targeting a 50% reduction in size and a 25% cost reduction by the mid-2020s.
  • This aligns with Honda's broader goal of producing over 2 million EVs annually by 2030 and achieving 100% EV and fuel cell vehicle sales globally by 2040.
  • Talks of collaboration with Nissan have emerged, with Otsu saying “There may be areas where we can work together” on joint material procurement.

• A new study predicts EV battery prices are on track to plummet nearly 50% by 2026, powered by advancements in technology and manufacturing. This shift is closing the gap between EVs and gas-powered cars faster than expected.
  • Goldman Sachs predicts battery prices will fall from $149/kWh in 2023 to $80/kWh by 2026 and $60/kWh by 2030.
  • To put it in perspective, a 100 kWh battery for a large SUV could cost around $6,000, while an 800 kWh battery for a semi-truck might be priced under $50,000.
  • Innovations like "cell-to-pack" design simplify battery construction, boosting energy density and reducing production costs.
  • Lithium iron phosphate (LFP) batteries, prized for durability and cost-efficiency, could claim 45% market share by 2025.
  • EVs are expected to reach cost parity with gasoline vehicles as early as 2026, even without government incentives.
  • “Rapid battery price drops and smarter designs will make EVs a mainstream option,” says Nikhil Bhandari of Goldman Sachs Research.

• Coca-Cola’s decision to remake its iconic 1995 “Holidays Are Coming” ad using AI has sparked both controversy and curiosity. Critics debate the ad’s aesthetics, while Coke sees it as a bold step in exploring generative AI’s potential for creativity and efficiency.
  • Three studios used AI to reinterpret the classic ad with tools like Runway and Leonardo.
  • Critics claim the new ads “look fake” and lack the original’s charm, sparking backlash online.
  • Despite critiques, market testing showed positive consumer responses with high emotional impact.
  • AI allowed hyper-localized content, adapting the ad for 12 U.S. regions with tailored details.
  • “We balance creative humans with new technology,” says Pratik Thakar, Coke’s head of generative AI.

Hosts: Paul J Daly and Kyle Mountsier

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