Electric car batteries costs have fallen as much as 35 percent between 2014-15

Last year has been highly progressive for electric and hybrid cars. Tesla has moved into high gear and major traditional car makers have also announced their plans for taking a similar path in the coming 2-3 years. While electric cars are comparably still more expensive than fossil fuel cars, it is being reported that battery costs for electric cars is falling.According to a recent study average electric-car battery costs declined every year between 2010 and 2015 with the biggest drop seen between 2014 and 2015 which was around 35 percent. Improvements in chemistry, manufacturing processes and economies of scale, authors of the study at the Frankfurt School of Finance & Management believe that future for electric cars is bright.Apart from that, the study says the cost has decreased due to aggressive pricing by large battery makers as they have been trying to defend their market share.One of the most prominent development was Tesla's Gigafactory in Nevada to accelerate its plans for its upcoming Model 3 EV. The plant started producing lithium-ion cells at the Gigafactory this month for Powerwall 2 and Powerpack 2 energy-storage battery packs. The company is aiming to launch the electric car in the second quarter of this year.Considering the global electric car sales, the numbers reached 462,000 units in 2015 which is almost double from 290,000 in 2014. The OPEC (Organisation of the Petroleum Exporting Countries) expects 1.7 million electric cars on roads globally by 2020, however Bloomberg New Energy Finance has said that 7.4 million electric cars will be on the road by the same time, with 2 million sold in 2020 alone.