The arrival of the electric car was accompanied by a promise of lower prices over time. This is also one of the arguments favoring the massive adoption of ‘zero emissions’ in the future. But that was before.
The current context is indeed changing the situation and the price of electric cars could well struggle to come down. Mainly in question, the price of batteries, which should increase due to supply difficulties.
It is above all the lack of lithium that is worrying, and in particular in the second part of the decade. Fastmarkets has thus predicted that lithium supplies will drop considerably until 2026 compared to demand.
We also have proof of this by noting the valorization of the mines of the rare material. In China, a company sold shares to allow it to become the majority shareholder and control the mine in Sichuan.
It collected 3448 auctions, to finally sell its 54.3% of shares for the sum of 299 million dollars. A price that is 600 times higher than the one fixed at the start.
Such a battle for control of a mine is proof that lithium will become valuable. We thus understand the will of the manufacturers to reduce or even remove the share of lithium, even if this is not enough.
According to CNBC, the market will indeed go through a storm for the next four years. As a result, the price of batteries, and therefore of electric cars, is set to rise dramatically.
A situation that will improve after 2026
This increase could be within a range of 1,500 to 3,000 euros per vehicle. The current cost of a battery per kWh is 116 euros, but it could rise to 138 euros in 2026.
Not everything is negative, since prices should then drop sharply from this date.. But the year 2026 was the date initially announced for the leveling between the prices of electric and those of thermal.
This will not be the case, and to encourage the adoption of electric vehicles before 2026, everyone will have to make an effort. This mainly involves governments, via bonuses and manufacturers, who are struggling to make a mark on ‘zero emissions’. A situation that promises to be complex with, ultimately, users who will not be able to make the switch to electric as quickly as they would like.
The arrival of the electric car was accompanied by a promise of lower prices over time. This is also one of the arguments favoring the massive adoption of ‘zero emissions’ in the future. But that was before.
The current context is indeed changing the situation and the price of electric cars could well struggle to come down. Mainly in question, the price of batteries, which should increase due to supply difficulties.
It is above all the lack of lithium that is worrying, and in particular in the second part of the decade. Fastmarkets has thus predicted that lithium supplies will drop considerably until 2026 compared to demand.
We also have proof of this by noting the valorization of the mines of the rare material. In China, a company sold shares to allow it to become the majority shareholder and control the mine in Sichuan.
It collected 3448 auctions, to finally sell its 54.3% of shares for the sum of 299 million dollars. A price that is 600 times higher than the one fixed at the start.
Such a battle for control of a mine is proof that lithium will become valuable. We thus understand the will of the manufacturers to reduce or even remove the share of lithium, even if this is not enough.
According to CNBC, the market will indeed go through a storm for the next four years. As a result, the price of batteries, and therefore of electric cars, is set to rise dramatically.
A situation that will improve after 2026
This increase could be within a range of 1,500 to 3,000 euros per vehicle. The current cost of a battery per kWh is 116 euros, but it could rise to 138 euros in 2026.
Not everything is negative, since prices should then drop sharply from this date.. But the year 2026 was the date initially announced for the leveling between the prices of electric and those of thermal.
This will not be the case, and to encourage the adoption of electric vehicles before 2026, everyone will have to make an effort. This mainly involves governments, via bonuses and manufacturers, who are struggling to make a mark on ‘zero emissions’. A situation that promises to be complex with, ultimately, users who will not be able to make the switch to electric as quickly as they would like.
