It isProducts like low-cost electric cars won’t be available anytime soon. Both EV production and Sales are increasingand the industry expects both demand to grow even higher by the end of the decade. The flip side of this demand is the scarcity of resources, which will affect the price of EV batteries. As CNBC Reportedly, the next 4 to 5 years will see EV and battery prices spike.
The main driver of this increase is the growing scarcity of lithium, a key ingredient in battery cell manufacturing. An analysis of Supermarket fast from last year said lithium supply is expected to fall relative to demand in 2026 and gradually decrease until 2030. And when VResearch company P of Colorado Source E Sam Jaffe pointed out to CNBC“You can’t make batteries if you don’t mine lithium.”
Automakers have become aware of this potential shortage and have called for more exploitation. Many are starting to cooperate with the mines themselves: GM has done it an investment in an Australian mining company’s attempt to extract lithium from California’s Salton Sea; BMW bought more than half a billion euros of lithium in Australia. Ford CEO Jim Farley also summon to mine more lithium.
So, by 2026, E Source estimates that battery prices will top $138 per kilowatt-hour, This will make electric cars more expensive. Depending on the vehicle, E Source forecast Electric vehicle prices will increase from $1,500 to $3,000. But it’s not all bad news, as prices are expected to drop after 2026.
So while automakers have (sort of) promised that cheaper electric cars are coming, other forces are working hard against them. More and more Electric vehicle models coming soon, but the fact that raw material prices increase the price of electric vehicles could make it impossible for millions of people to adopt EVs without more help from the government.