The price of lithium, a rare metal used in the manufacturing of rechargeable batteries, has increased fivefold since April last year as demand from automakers surged, according to a recent report by British research firm Argus Media.
Prices have also soared for other metals such as cobalt and nickel that are used for the batteries, which account for about 30% to 40% of the overall price of EVs, the firm said.
The surge in demand, along with Russia's invasion of Ukraine, which has disrupted lithium supply chains, will in turn likely drive up prices of the EVs themselves, making the already expensive cars even less affordable for consumers and potentially slowing the shift from fossil fuel cars.