Material Costs for Electric Car Production Surge Three Times Faster

 The cost of materials for producing plug-in hybrid electric vehicles (PHEVs) was not mentioned, but is likely to be higher than pure electric vehicles, according to Dario Duse, director of AlixPartners in Italy.



The costs in this survey are for European production and include all critical raw materials, excluding manufacturing costs, which AlixPartners estimates to be around $3,100 per vehicle. electricity.


The reason for the sharp price increase is the cost of the raw materials used to produce the batteries - lithium, cobalt, manganese, and nickel. Demand is not the only reason for rising raw material prices, but also because energy prices directly affect mining operations and processing costs.


This also means that previous predictions that electric cars will have the same price as internal combustion engine cars are no longer valid.


However, the good news is that the auto industry has surpassed the cost peak of 6,848 USD/vehicle in March 2022. The impact of high energy costs on electric vehicle production will decrease over time, as electric vehicles are often produced using more energy efficient processes.

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