Volvo was one of the first legacy automakers to announce plans to drop combustion powertrains in favor of pure battery-electric setups by 2030, evidenced partly by the recently-revealed EX90. But Volvo CEO Jim Rowan, per Automotive News, believes EVs reaching price parity with combustion-engined vehicles will happen by 2025.

"There's no way that any company should be relying on government subsidy to be successful." Rowan took over as CEO earlier this year and has wasted no time pursuing the luxury brand's EV agenda. But reaching price parity with gas-powered vehicles in just over two years? Is that even possible? Perhaps. "We think we get [to price parity]... around 2025, where there'll be enough technology that's driving down cost on the battery," he said. "Technology will drive range up. Less batteries, but more range, at less cost - we'll get there."

One key area that should help is the introduction of smaller, less expensive models, such as a new crossover, slotting in below the Volvo XC40 Recharge and C40 Recharge, which will arrive in the US by late next year. It's justifiable to question Rowan's prediction, especially since the industry is bracing for increased battery and raw material prices that will probably result in higher sticker prices. Still, Volvo is the second manufacturer to promise cheaper EVs despite all of the above.

One possible reason for Rowan's bullish attitude comes from the automaker's battery supplier, China's CATL. CATL recently became the global leader in battery affordability at $131 per kilowatt hour. Volvo wants to reduce that figure to only $100 no later than 2026. Rowan is clearly positioning Volvo to take on competitors such as Audi, BMW, Mercedes-EQ, and Tesla.

Furthermore, as part of the Inflation Reduction Act, the Biden administration Inflation Reduction Act, released $1.5 billion in funding to add more EV chargers along some 75,000 miles of US highways. A total of $5 billion will be unlocked over the next five years to assist states' charger expansion. "It's a lot of money," Rowan added. "That's a great thing, and I think that will drive adoption toward BEV."

Already, the EX90, which is built in South Carolina, qualifies for the $7,500 federal EV tax. That won't make the $80k SUV affordable, but it'll undoubtedly help.

"We'll benefit [from the Inflation Reduction Act] when we get to the smaller SUVs that we'll bring," Rowan said. But it's the smaller EV SUV market where Rowan believes his company will benefit the most because of the government programs.