Rising gasoline prices are one significant reason why many buyers are opting for electric cars. With the purchase of battery-powered models, owners plan to offset rising fuel costs. However, the prices of electric cars are not standing still either. Due to rising prices for components and supply problems, electric car manufacturers are forced to raise the cost of their products as well. Experts predict that a shortage of raw materials will lead to a significant increase in the price of all-electric cars by 2026.
Ford and General Motors have recalculated their costs for 2022 due to the growth of the cost of most components. Both companies have nearly doubled the amount (to four and five billion dollars) they have budgeted for the purchase of commodities. Sam Jaffe, vice president of research firm E Source, estimates that shortages of key components will lead to a 22 percent increase in the cost of battery cells in 2026.
The rush toward electrification will lead to a catastrophic shortage of lithium. In recent years, as electric transportation has evolved, battery component prices have fallen, reaching $128 per kilowatt-hour. By 2026, however, experts predict the cost of cells will rise to $138. This development is indirectly confirmed by the CEOs of Volvo and Stellantis, who said that the world is expecting a shortage of battery supplies in the coming years.
Global lithium production has not yet kept up with the sharp increase in demand for the material, and investors are not finding it feasible to invest in new projects. In this regard, the only solution to this problem will be an increase in the price of electric cars. For example, the cost of the Tesla Model 3 rose 23 percent over the year, from $38,190 to $46,990. Rivian also raised the price of its electric trucks. Over the past year, the R1T rose 17 percent to $78,975 and the R1S rose 20 percent to $84,000.
At the same time, not all car brands believe the dramatic shift to electric vehicles brings with it only pluses. For example, Luca de Meo, head of the Renault Group, said that an early switch to battery-powered vehicles would have a negative impact on the environment.