The major reason for falling prices of Lithium is that EV sales in China and Europe were slowed after subsidies expired for purchasing EV cars
Chemical element Lithium, which is now dubbed ‘White Gold’ is commonly utilized in almost every electric car battery, but interestingly, the price of this element has fallen drastically thereby helping EVs to be more affordable. According to Benchamak Minerals, by 20 percent the price of lithium has fallen since January, which has augmented the sales of electric cars globally.
Cobalt, another element which is widely used in making batteries has also fallen by more than double, and Copper on the other hand, used in batteries and electric motors has fallen by around 18 percent, but unfortunately, copper countries like Peru and the US are still facing various challenges to escalate production. According to an exclusive report of the New York Time, the sudden decrease in price has astonished various global experts who speculated that prices will increase by two-folds. But, this fallen price has shifted to cleaner and greener forms of transportation and also limited climate change.
The NYT report also added that decrease in commodity prices have made EV makers reduce the prices. A month back, Tesla has even reduced the price of its expensive models, the Model S sedan and Model X sport utility vehicle by thousands of dollars, claims NYT. Kelley Blue Book, California-based vehicle valuation and automotive research company mentioned that in the US the average price of electric vehicles has fallen by $1,000 in February compared to January.
As per the NYT report, “For electric vehicles, the major roadblock is cost,” said Kang Sun, the CEO of Amprius Technologies, a young battery maker that this month announced plans for a factory in Colorado. The falling price of lithium, he said, “is going to promote EV sales.” As the demand for the metal has not increased, therefore, the prices could fall much more. The major reason for falling prices of Lithium is that EV sales in China and Europe were slowed after subsidies expired for purchasing EV cars.
