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Electric cars: dozens of houses raise prices due to higher raw materials

The price increases of raw materials have prompted several manufacturers to increase the list prices of their electric cars.

Carlos Tavares, CEO of the Stellantis group, had warned the sector: the production costs of electric cars are 40-50 percent more expensive than their endothermic counterparts. Consequently, automakers will have more than a few problems absorbing a cost differential of this magnitude.

Probably the Chief Executive Officer of the Italian-French group did not take into account the recent and very strong increase in the price of raw materials, which is pushing several companies, especially Chinese , to apply an increase in the prices of their battery-powered vehicles. In the last few days alone, about twenty companies, including the most famous Tesla , Xpeng and BYD, have revised their price lists upwards, affecting a total of 40 models , precisely in order to include the higher costs to be incurred at the time of manufacture.

Dizzying peaks

electric car refueling

In the past few weeks, a series of negative factors have brought commodities to record levels. The main reason, of course, is the outbreak of the conflict in Ukraine. For example, a ton of lithium carbonate costs nearly $ 80, 10 times more than 2021 levels, while nickel and cobalt have almost doubled in less than three months.

Trend also found in other important elements such as copper and palladium, as well as in metals such as steel and aluminum. Ultimately, the price of some of the main production materials has risen sharply and, in some cases, the persistent inconveniences of the global logistics network make it increasingly difficult to find them on the market.

The increases are even more surprising due to the fact that they affect the Chinese manufacturers , who are definitely at an advantage over Western competition, given the position taken by the Asian state within the supply chain of the main components for electric cars. Indeed, Great Wall Motor has even chosen to suspend the collection of orders for the models of its Ora brand, so that the increase in raw materials has pushed production costs to exceed sales prices.