• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 days GREEN NEW DEAL = BLIZZARD OF LIES
  • 4 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 2 days Even Shell Agrees with Climate Change!
  • 8 days America should go after China but it should be done in a wise way.
  • 4 days How Far Have We Really Gotten With Alternative Energy
  • 5 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 4 days World could get rid of Putin and Russia but nobody is bold enough
  • 7 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
This Could Be A Gamechanger For Natural Gas In Europe

This Could Be A Gamechanger For Natural Gas In Europe

Europe’s lack of energy security…

Oil Markets Await the Next OPEC+ Announcement

Oil Markets Await the Next OPEC+ Announcement

Oil prices remained rangebound in…

Batteries On A “Ridiculous” Cost Surge, Chinese EV Maker Says

Battery prices for electric vehicles are seeing a “ridiculous” increase on the back of soaring raw material prices, and carmakers will soon have to raise prices if they haven’t done it yet, according to the top executive of Chinese electric vehicle manufacturer Li Auto Inc.

“The cost of batteries in the second quarter rose by a very ridiculous amount,” Bloomberg quoted Li Auto’s chief executive officer Li Xiang as saying on his Weibo account this weekend.

Because of rising costs for raw materials, Contemporary Amperex Technology Co. Ltd. (CATL), the largest battery maker in the world, already announced today in a statement to Reuters that it had raised the prices for some of its battery cells, without giving additional details of the price hike.

China’s Li Auto has not yet announced any price increases for its EVs.

Rising costs for raw materials and logistics have already made Tesla raise its prices for China and the United States. This month, Tesla raised its prices for the second time in less than a week.  

Costs of raw materials and key metals for EV batteries, such as nickel and lithium, have skyrocketed since Russia’s invasion of Ukraine at the end of February.

“Tesla & SpaceX are seeing significant recent inflation pressure in raw materials & logistics,” Elon Musk tweeted last week.

Lithium prices were soaring even before the Russian war in Ukraine. Lithium prices hit a record high at the start of 2022, and analysts said back then that the rally had legs to continue even higher. The surging price of one of the battery pack’s key metals was already exerting enormous cost pressure on battery production, while demand continues to soar as nearly every major carmaker is developing electric vehicles and aiming to significantly boost zero-emission car sales this decade.

ADVERTISEMENT

Now the war in Ukraine is accelerating the rise in metals and minerals, and the soaring prices of batteries and of metals for all other components of cars, including aluminum, have already started to translate into higher EV prices, potentially slowing down the speed of EV adoption.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • DoRight Deikins on March 21 2022 said:
    What a surprise!
  • Dennis on March 21 2022 said:
    well yes batteries will go up as demand goes up then it will crash once no one can afford to go green

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News