The price of new energy vehicles is rising but the price of lithium batteries is not

Why are EV batteries so expensive?

Like lithium, nickel and cobalt have seen their prices rise sharply. Just over half of the price of a typical EV battery cell comes from the minerals in the cathode, with 12% from the graphite in the anode. The popular “NMC” cathode type uses lithium, nickel, manganese, and cobalt (the latter three giving it the NMC name) for the anode.

Are lithium-ion battery prices rising again?

Lithium-ion battery prices have plummeted over the past decade or so, yet last year soaring metal prices helped to push up battery costs by 7%. The recent fall in lithium prices should again mean cheaper batteries, but it typically takes months for lower prices to translate into cheaper cars, by which point prices may be rising again.

Will lithium price spike affect EV development?

The surging prices of materials, especially lithium, have stirred up wide concerns about future EV development. In this commentary, with a focus on lithium, we argue that although the current price spike gives the EV market a sharp short-term shock, it will not hinder transportation electrification in the long run.

Are electric vehicles affecting global lithium supply?

But rising demand for Electric Vehicles is straining global lithium supplies. Global EV purchases jumped to 6.6 million in 2021 from 3 million a year earlier, meaning that EVs made up 9% of the market, according to the International Energy Agency (IEA).

Will Lithium prices rise in 2021?

After dipping from the end of 2018 to the end of 2020, lithium prices rose sharply in 2021. This doubling, trebling, and quadrupling of key elements in Lithium-Ion batteries sounds almost terminal for the price reductions and volume growth we have seen in the last couple of years. However, there are a few other factors to take into consideration.

How much do EV batteries cost in 2022?

In April 2022, prices of NCM and LFP prismatic electric vehicle (EV) battery cells reached $130/kWh and $120/kWh, respectively, 30% and 50% higher than their pre-surge levels. To respond, many EV companies inflated retail prices, typically by 3%–5%, or even discontinued the sales of low-profit EV models, e.g., the Great Wall Ora.