Continuing drops in lithium-ion battery prices mean that electric vehicles (EVs) will be less expensive to own than gas or diesel-powered vehicles as soon as the 2020s, according to a new report.

The report, by Bloomberg New Energy Finance, calculated that EVs’ total cost of ownership will become cheaper on an unsubsidized basis than that of internal combustion engine cars by the mid-2020s. This will occur even if gas-powered cars continue to improve their average mileage per gallon by 3.5% per year.

The study’s figures assume that EVs with a 60kWh battery (such as the Tesla Model S) will travel 200 miles between charges. The first generation of these long-range, mid-priced EVs is set to hit the market in the next 18 months with the launch of the Chevrolet Bolt SUV and Tesla Model 3.

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