Electric car battery prices are going back down faster than expected (2023)
1–10 of 73 posts
Re: Electric car battery prices are going back down faster than expected (2023)
#2This is mostly talking about estimates, most of that drop hasn't happened yet.
Re: Electric car battery prices are going back down faster than expected (2023)
#3This is mostly talking about estimates, most of that drop hasn't happened yet.
But most of the drop is in 2024, so is fairly firm.
Re: Electric car battery prices are going back down faster than expected (2023)
#4What’s never explained here is the why. Is the market for the raw materials cheaper because there is a decrease in demand or an increase in supply of raw materials in the market?
Articles that hand wave it as “due to inflation” are a bit frustrating.
Re: Electric car battery prices are going back down faster than expected (2023)
#5So will car manufacturers lower the price of electric cars or will they just pocket the difference?
Re: Electric car battery prices are going back down faster than expected (2023)
#6So will car manufacturers lower the price of electric cars or will they just pocket the difference?
there's enough competition in the EV sector for margins to remain fairly low. o saw a chart once. Tesla is the only one with big margins, i remember.
Re: Electric car battery prices are going back down faster than expected (2023)
#7So will car manufacturers lower the price of electric cars or will they just pocket the difference?
Fingers crossed, we might just see more affordable EVs hitting the streets soon!
Re: Electric car battery prices are going back down faster than expected (2023)
#8Goldman Sachs report from November 1, 2023 that this is based off of: https://www.goldmansachs.com/intelligence/pages/electric-veh...
Here's a February 29, 2024 article from Goldman Sachs on the same topic: https://www.goldmansachs.com/intelligence/pages/even-as-ev-s...
Re: Electric car battery prices are going back down faster than expected (2023)
#9What’s never explained here is the why. Is the market for the raw materials cheaper because there is a decrease in demand or an increase in supply of raw materials in the market? Articles that hand wave it as “due to inflation” are a bit frustrating.
Because that question is more of an economics research paper or policy brief than a mass media article. And in that arena data are currency, ie largely not public.
Generally, there’s a lot of economics principles at play. Economies of scale mean as more is produced, often, still further increases in production are possible more cheaply than previously obtained. First semi chip produced might cost billions. The billionth chip might be pennies. There’s also a concept in the environmental economics that pulling finite resources out of the ground responds to increasing demand similar to pulling more money out of a bank via loans. Ie the most easy to obtain resources are mined first and the cost increases from there. In practice, too, producer relationships matter. A company buying batteries for EVs (ie at that scale) for their 5th year in a row is going to have demonstrated to their suppliers that, indeed, they can write a check for all the materials they’ve ordered much more than in year 0. So their suppliers have better information about how reliable their needs are, and so on.
Lots of complicated things not generally in the public knowledge nor easy to explain quick enough to not get scooped by another organization.
Re: Electric car battery prices are going back down faster than expected (2023)
#10What’s never explained here is the why. Is the market for the raw materials cheaper because there is a decrease in demand or an increase in supply of raw materials in the market? Articles that hand wave it as “due to inflation” are a bit frustrating.
I think there's been a big scaleup of capacity that's coming on-line exactly as BEVs are declining in popularity.