According to a report, Mercedes-Benz maker Daimler predicts that the cost of EV batteries and fuel cell cars will drop significantly in the next few years, especially for the latter, paving the way for closer parity against conventional offerings.

The company’s e-drive and future mobility boss Herbert Kohler said that while a few years ago, the price was at about 1,500 euros per kilowatt hour for a lithium ion battery, the price should drop to around 400 euros in the midterm, according to the ANE report.

He added that the expectations are for an even bigger price decrease for fuel cells, with the belief that EVs could be more expensive than fuel cells in less than five years. By 2015, the company beleives that a fuel cell car won’t cost more than a four-cylinder diesel hybrid meeting the Euro 6 emissions standard, according to Kohler.

The company has already been doing running trials on a fleet of its B-class fuel cells cars, with the second-generation of the form based on its new MFA front-wheel drive architecture expected – along with its A-class sibling – around 2013 or 2014, and is aggressively pursuing a target of getting 1,000 fuel cell mules on the road in the next three years.

Kohler added he expected that there would be a network of 1,000 fuel-stations in Germany alone by mid-term, effectively having a fueling-station for a fuel cell vehicle within an every 30 km distance.