EV battery costs to increase by 22% over the coming years

Prices of EVs in 2026 will be anywhere between $1,500 - $3,000 more than today.

According to a news report, the cost to produce electric vehicles is expected to surge over the next four years. As per the research firm 'E Source', the surge in prices will be due to the scarcity of raw materials needed to make battery cells.

E Source did mention that the cost of battery cells has declined in recent years due to an increase in production and is expected to continue for another year. However, from 2023 the prices of the battery cells will surge by up to 22 per cent. Battery cell production cost is expected to fall to US$110 per kilowatt-hour in 2023, before peaking at US$138 per kilowatt-hour in 2026. Post this, the cost will gradually begin to reduce, maybe to prices as low as US$90 per kilowatt-hour in the next decade.

The spike in the cost of battery cells between 2023 & 2026 is said to be due to the sharp demand for key raw materials, including lithium.

The rising battery costs are also expected to increase the prices of EVs by a significant amount. According to the research firm, the prices of EVs in 2026 will be anywhere between $1,500 - $3,000 more than today. EV sales in the US alone are expected to top 2 million annually, with multiple car brands introducing dozens of new models in their lineup.

Source: CNBC