Battery makers are increasingly passing on higher lithium, cobalt and nickel prices, spurring carmakers to explore entering mining and different technologies, according to a new report, as the day when the cost of making electric vehicles hits parity with petrol cars is pushed out.Poor’s has said they are set to rise in 2022 and “remain high” in 2023.
Elon Musk, the founder of biggest EV maker Tesla, last week told a London conference that while it would prefer not to buy mining companies, “if that’s the only way to accelerate the transition, then we will do that”., when Mr Musk tweeted that the lithium price – which had spiked more than 500 per cent in just over a year – was “insane” and Tesla might get into mining and refining at scale “unless costs improve”.
For now, though, demand globally has remained solid in 2022 but more volatile, partly due to lockdowns in China, the biggest market. It follows a 108 per cent surge in global EV sales in 2021, according to SMr Chan said that, despite higher costs, automakers are lifting their EV investments, citing commitments by Volkswagen and BMW for EVs to make up half of sales by 2030.
“The combination of more EV development and greater substitution of ICE vehicles for EVs before the effect of economies of scale kicks in will erode automakers’ margins,” Mr Chan said, adding new EV models would be lower margin than ICE portfolios for the next few years.“As competition intensifies, the pace at which battery costs decrease will determine the success of global automakers’ EV strategies. As such, we believe more automakers will strive to secure a stronger battery supply chain .
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Source: FinancialReview - 🏆 2. / 90 Read more »