Rising battery costs fails to slow down sale of electric vehiclesBuyers from all over the world are lining up to buy electric vehicles this year, despite rising sticker prices, reversing a decade and a half of conventional wisdom that EV sales would only take off if battery costs fell below a barrier that was always just over the horizon.
EV demand has remained robust this year, despite the fact that the average cost of lithium-ion battery cells increased to $160 per kilowatt-hour in the first quarter, up from $105 last year. Costs increased as a result of supply chain interruptions, Russian metal restrictions, and investor speculatio
Higher battery costs increased over $1,500 to the sticker price of a smaller vehicle like the Hongguang Mini, China’s best-selling electric vehicl
However, since Russia’s invasion of Ukraine, gasoline and diesel fuel prices have surged, and analysts say that environmental concerns are pushing more purchasers to pick EVs despite the unpredictable econom
Manufacturers ranging from Tesla to SAIC-GM-Wuling, which produces the Hongguang Mini, have passed on greater costs to consumers by raising EV prices by double digit
More could be on the way. According to Andy Palmer, chairman of InoBat, a Slovak EV battery manufacturer, the battery industry’sgfff margins are already razor-thin, so ‘increasing costs will have to be passed on to carmakersby.’s.y.e.n.
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