Raw Material Costs For Electric Cars Doubled During The Pandemic And Its All Joe Biden’s Fault — Or Not
for an EV totaled $8,255 per vehicle as of May, 2022. That’s up 144% from $3,381 per vehicle in March 2020. The increase has been led by materials such as cobalt, nickel, and lithium — minerals essential for the production of many of the batteries used to power electric cars and trucks.
In the meantime automakers are raising prices for buyers. GM on Friday announced it would hike the price of its electric Hummer by $6,250. The automaker blamed higher prices for parts, technology, and logistics. Tesla, Rivian, Lucid, and others previously announced notable increases in the starting costs of their EVs.
The analysis finds the industry at large is highly susceptible not just to chip shortages but to future disruptions for many materials — from steel to packaging — due to short-term industry ordering habits and low visibility into supply chains, plus design and engineering approaches that don’t allow flexibility.
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