I’m an EV expert – electric car prices are only going to get higher… demand and costs are going to rise
AN EXPERT has warned that electric vehicle prices are likely to soar in the next few years.
As demand for EVs continue to grow, production of the motor’s lithium batteries could stagnate – bringing prices up.
Lithium is fast becoming one of the planet’s most valuable commodities, as it powers ubiquitous smart phones as well as electric vehicles.
It is also a finite material which means when it’s gone, it’s gone for good.
Rystad Energy Vice President Susan Zou estimates that a global lithium surplus caused by a “global push to electrify transportations” could cause shortages in the next few years.
The total lithium supply will soar by 30% and 40% year on year in 2023 and 2024.
Susan said: “In the next couple of years, though the lithium supply may stay adequate at a world-level, regional supply imbalance is still inevitable.
“The global battery supply chain may find lithium in shortfall again approaching the end of this decade when the supply growth might not keep pace with that of the demand.”
Zou added that the price of lithium could spike to their historic 2022 highs, increasing battery production costs.
Elsewhere, it was reported that cheap EVs are being probed over a potential “unfair advantage” – and prices are now set to rise.
The European Commission has announced that it will investigate the flood of low-priced electric cars from China that is overwhelming the continental market.
Chinese firms are able to offer their vehicles at substantially lower prices because they are backed by subsidies from the communist government.
This allows them to offer cars for an average of 20% less than EU manufacturers.
Drivers have been flocking to previously niche Asian manufacturers as the global cost of living crisis hits home.