War in Ukraine affects EV manufacturers
The auto industry’s huge bet on electric vehicles is built on a simple prerequisite: that batteries will continue getting cheaper.
Now, Russia’s invasion of Ukraine might halt the price drop, writes the Financial Times.
As a consequence of the war in Ukraine, prices of nickel, lithium and cobalt, which are key materials in battery production, have soared. A year ago, the price of volumes needed for a large family vehicle came a total of USD 1,395 for all three metals. In early March, the same volumes cost USD 7,400, according to auto group Farasis Energy.
”At the moment, raw material prices are a heavy burden, given our goal of reducing battery production costs,” says Chief Financial Officer of Audi Jürgen Rittersberger. Prices of raw materials used for vehicles with internal combustion engines have also increased, however. As a result, costs involved in the making of both types of vehicles will go up, writes FT.
According to the media, the prospect of increased prices of EVs comes amid increased demand for battery-driven cars in the wake of surging oil prices. Figures from Bernstein show that more than 1.1 million battery-driven cars were sold in the first two months of the year, a 90-percent increase from last year, the business media writes.
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