- The cost of raw materials needed to make electric cars is rising, CNBC reported.
- The average cost in raw materials in May was about $ 8,255 per car, the outlet reported.
- EV manufacturers including Tesla have increased the price of their cars.
The cost of producing electric cars has gone up in the last two years, with the price of the raw materials needed to build the cars more than doubling since the start of the pandemic, CNBC reported under mention of research from consulting firm AlixPartners.
The average cost of raw materials – including the cobalt, nickel and lithium needed to make EV batteries – was about $ 8,255 per car in May, the outlet reported, citing AlixPartners’ research.
Those costs represent an increase of more than 140% of the $ 3,381 in raw materials it cost to build an electric car in March 2020.
High raw material costs come amid persistent supply chain disruptions in the EV sector. The war in Ukraine has helped push prices even higher, seeing Russia as a major exporter of some of the metals used in the production of battery cells.
Many EV manufacturers are increasing the price of their cars, in part because of the rising cost of raw materials.
Tesla has instituted price increases for all models, with the cost of a Model X increasing as much as $ 6,000, Bea Nolan of Insider reported earlier. The electric car giant is also struggling with computer chip deliveries as a result of ongoing supply chain problems and layoffs.
Ford and EV startup Rivian have also increased the cost of their cars. Ford said earlier that the rising cost of raw materials had been profitable, several retail outlets reported.
AlixPartners predicted that the high costs would cause a backlog in new product launches, but would not affect the growing number of EVs on the market, CNBC reported.
The interest in electric cars has increased as a result of high gas prices, but the increasing cost of electric options puts the cars more out of reach for many ordinary consumers.
According to car buying site Edmunds, the average price paid for a new EV in February hit $ 60,054. That price went to $ 60,984 in May, Bloomberg reported, referring to Edmunds.