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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 techno

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

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