We’re beginning to see popular culture shift toward EVs during this year. Many people are curious what broad EV adoption will look like. And thanks to the geopolitical climate, we’re definitely seeing an acceleration.
We’re also seeing the price of batteries rise right now. This causes some folks to shy away. But in reality, it’s not a big problem.
Keep in mind that raw input prices are not a major influencer of the cost of a vehicle. Indeed, the raw materials that go into making the batteries, like lithium, has dramatically decreased over the last decade. During the 2010’s, lithium-ion battery prices decreased 90%!
So, if raw material prices don’t affect the price of an EV, what does? R&D factors like chemistry, material science, economies of scale and automated manufacturing are the main drivers of EV prices.
The EV market is set to get bigger and more powerful over the next few years. This price increase in only temporary.
And remember; its all relative. EV prices are going up because, thanks to inflation, everything else is, too. But the key piece to remember is that EV and other alternative clean energy costs are rising at a much slower rate than that of fossil fuels.
There’s clearly a demand shift toward EVs and solar energy, which are cheaper right now than their alternatives. And this will fuel the mass adoption of these technologies over the next few years.
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