The invasion of Ukraine threatens the electric car sector

Rising raw material prices threaten the growth of the electric car sector.

Based on the prediction that battery prices would be increasingly affordable for consumers, the auto industry invested billions of euros in research and production of electric vehicles, a prediction that occurred between 2011 and 2021, when the cost of the battery fell from the US dollar. 1,000 per kilowatt-hour (KWh) to $130 KWh, but that now, with the war in Ukraine driving up commodity prices, seems to no longer make sense, the Financial Times reports.

The prices of nickel, lithium and cobalt, which are the basic raw materials for battery production, have risen due to the disruption of global demand, but the Russian invasion of Ukraine has greatly exacerbated this scenario, as Russia, for example, is responsible for 11% of nickel worldwide the scientist.

The price of these three industrial minerals, indispensable to powering a 60-kilowatt-hour battery and powering a family car, rose from $1,395 a year ago to $7,400 at the start of March, according to the battery manufacturing group’s calculations. , Frasis Energy, citing the Financial Times.

“At the moment, raw material prices are a heavy burden, given our goal of reducing battery production costs,” Audi CFO Jürgen Rittersberger lamented, in an interview with the British daily, Jürgen Rittersberger, whose brand promised to launch cars Electric only as of 2026. .

In turn, Arno Antlets, who is responsible for the finances of Volkswagen, stressed that “we have to bear in mind that we need specific materials for batteries, but we also need, for example, palladium and platinum to produce our cars. [movidos a combustão]So we expect the cost of both cars to increase.”

Thomas Becker, who is responsible for BMW’s sustainability division, said the company is not worried at the moment. “We have long-term supply contracts with all battery suppliers. So I wouldn’t say there is any imminent impact on the supply structure,” Becker added.

By the end of February this year, more than 1.1 million electric vehicles had been sold, an increase of nearly 90% year-on-year, according to data provided by Bernstein and cited by the Financial Times.