[RahulNagaraj]

According to a news report, the cost to produce electric vehicles is expected to surge over the next four years. As per the research firm 'E Source', the surge in prices will be due to the scarcity of raw materials needed to make battery cells.



E Source did mention that the cost of battery cells has declined in recent years due to an increase in production and is expected to continue for another year. However, from 2023 the prices of the battery cells will surge by up to 22 per cent. Battery cell production cost is expected to fall to US$110 per kilowatt-hour in 2023, before peaking at US$138 per kilowatt-hour in 2026. Post this, the cost will gradually begin to reduce, maybe to prices as low as US$90 per kilowatt-hour in the next decade.



The spike in the cost of battery cells between 2023 & 2026 is said to be due to the sharp demand for key raw materials, including lithium.

The rising battery costs are also expected to increase the prices of EVs by a significant amount. According to the research firm, the prices of EVs in 2026 will be anywhere between $1,500 - $3,000 more than today. EV sales in the US alone are expected to top 2 million annually, with multiple car brands introducing dozens of new models in their lineup.

Source: CNBC

Link to Team-BHP news

[shortbread]

Just a few corrections in order to ensure the article is not misrepresented!

The heading is wrong, the article only states that 'EV battery costs could spike 22% by 2026' and not battery and vehicle costs, there is a big difference.

It also states that prices will ultimately fall, which was something TML confirmed a swell. The current hike in raw material prices is across the board, even ICE cars have seen a big increase in prices. Inflation has seen prices of almost every product increase not just EVs......eg. the price of fuel.

Tata Motors says 20% rise in battery cell costs increasing short-term pressure

Lithium is not a scarce commodity and is abundantly present. The challenge is in upping mining capacity. A lot of this is in place and prices will come down when new supplies hit the market.

Originally Posted by RahulNagaraj

According to a news report, the cost to produce electric vehicles is expected to surge over the next four years. As per the research firm 'E Source', the surge in prices will be due to the scarcity of raw materials needed to make battery cells.

Attachment 2312282

E Source did mention that the cost of battery cells has declined in recent years due to an increase in production and is expected to continue for another year. However, from 2023 the prices of the battery cells will surge by up to 22 per cent. Battery cell production cost is expected to fall to US$110 per kilowatt-hour in 2023, before peaking at US$138 per kilowatt-hour in 2026. Post this, the cost will gradually begin to reduce, maybe to prices as low as US$90 per kilowatt-hour in the next decade.

Attachment 2312283

The spike in the cost of battery cells between 2023 & 2026 is said to be due to the sharp demand for key raw materials, including lithium.

The rising battery costs are also expected to increase the prices of EVs by a significant amount. According to the research firm, the prices of EVs in 2026 will be anywhere between $1,500 - $3,000 more than today. EV sales in the US alone are expected to top 2 million annually, with multiple car brands introducing dozens of new models in their lineup.

Source: CNBC

Link to Team-BHP news

[Contrapunto]

I am afraid, pure EVs will start becoming limited to high mid-range to high end models only. That will be the only segments where they can pass on the increase input costs..

Toyota's strategy to focus on strong hybrids to act as "range extenders" suddenly seems wise...

[shortbread]

Originally Posted by Contrapunto

I am afraid, pure EVs will start becoming limited to high mid-range to high end models only. That will be the only segments where they can pass on the increase input costs..

5 years ago EVs seemed to be a playground limited to Teslas and the german trio. Today Tata is selling 4k EVs a month. EVs will continue to be more affordable to buy, and more importantly cheaper to run.

[GTO]

We're living in extremely strange times for the automotive world where there are chip shortages, insane price hikes (in a market that is recording ordinary sales growth) and changes in the tech landscape due to EVs. But then, this fits in just as well for India. The research says that battery prices will drop post 2026, which is about the time we'll be seeing more mainstream EVs in India.

But yeah, the next year or two are definitely going to see more price hikes, whether for EVs or ICE cars. Crazy times.

[NG_EV]

Originally Posted by RahulNagaraj

Battery cell production cost is expected to fall to US$110 per kilowatt-hour in 2023, before peaking at US$138 per kilowatt-hour in 2026. Post this, the cost will gradually begin to reduce, maybe to prices as low as US$90 per kilowatt-hour in the next decade.

Just wanted to point that the cost of LFP batteries is already below 60$/KWh. The Blade batteries from BYD are at 58.7$/KWh (55€/KWh) according the article mentioned below.

https://pushevs.com/2021/08/10/this-...f-competition/

[ASP_73]

Really good news and proud moment for India that IITM researchers have such a breakthrough in battery technology.

https://www.iitm.ac.in/happenings/pr...ration-battery

[GutsyGibbon]

Then there are some manufacturers who underestimated the competition. They are now seen cutting down the prices drastically at a time when costs are climbing up significantly.
https://www.cnbc.com/2022/06/01/gm-s...ity-costs.html

[BrokenHW]

EV battery market is dominated by Asian countries. 92% market share globally
(China 56%, South Korea 26%, Japan 10%)
India and other countries have to do lots of catch-up

[PreludeSH]

Originally Posted by ASP_73

Really good news and proud moment for India that IITM researchers have such a breakthrough in battery technology.

https://www.iitm.ac.in/happenings/pr...ration-battery

Price quoted for lithiun ion battery is 4 times of what it actually is.
So these zinc air ones are still costly