Explainer: Costs of nickel and cobalt used in electric vehicle batteries
The scarcity of raw materials has caused the price of electric vehicles to soar recently, and how expensive is the nickel and cobalt used in electric vehicle batteries?
Rising sales of electric vehicles (EVs) and a scramble along the supply chain to secure materials have propelled prices of battery ingredients nickel, cobalt and lithium to multi-year highs.
"Raw material prices and availability are starting to have an impact on prices of battery cells, suppliers were notifying customers of increasing prices late in 2021," said Benchmark Mineral Intelligence (BMI) analyst Caspar Rawles.
"Raw material prices and availability are starting to have an impact on prices of battery cells, suppliers were notifying customers of increasing prices late in 2021," said Benchmark Mineral Intelligence (BMI) analyst Caspar Rawles.
One reason to cut cobalt content in EV batteries is cost - cobalt metal on the London Metal Exchange is trading at four-year highs around $71,000 a tonne.
Cobalt is a byproduct of nickel production in Indonesia.
Shortages of nickel have fuelled a rally that took prices to $24,435 a tonne last month, the highest since August 2011.
Lithium mining also faces opposition from environmental and social activists.
Deficits have pushed prices of lithium carbonate to record highs above $50,000 a tonne in China, according to BMI.
$Tesla (TSLA.US)$ $Lucid Group (LCID.US)$ $Rivian Automotive (RIVN.US)$ $Mullen Automotive (MULN.US)$
Cobalt is a byproduct of nickel production in Indonesia.
Shortages of nickel have fuelled a rally that took prices to $24,435 a tonne last month, the highest since August 2011.
Lithium mining also faces opposition from environmental and social activists.
Deficits have pushed prices of lithium carbonate to record highs above $50,000 a tonne in China, according to BMI.
$Tesla (TSLA.US)$ $Lucid Group (LCID.US)$ $Rivian Automotive (RIVN.US)$ $Mullen Automotive (MULN.US)$
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