Market experts are carefully watching a drop in lithium prices—and what impact that could have on EV costs—according to a new Bloomberg report.
Lithium’s benchmark price in China—the world’s largest new-car market and a center for battery production—is down about 80% from its November 2022 record high, the report noted. Prices of other battery materials are also falling, meaning overall battery prices are dropping again after a raw material price surge in 2022.
Stack of Rivian battery cells
Batteries account for the majority of the cost of EVs, so price decreases are key to EV affordability. And while global EV sales are still growing, demand isn’t increasing quite as fast as the industry anticipated, the report notes.
Low raw materials prices and excess manufacturing capacity caused by overoptimistic EV growth predictions seem like ingredients for an EV price war, but the…
Read full article originally published on www.greencarreports.com