Affordability has always been a major challenge in the adoption of electric cars across the world. Many companies, including Tesla, are trying hard to slash the prices of Electric Cars to make their electric cars more affordable for people. The high price of batteries is a prime reason for the high prices of electric cars.
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As per Trading Economics, Lithium prices is continuously falling since November 2022. Lithium is one of the core elements in the manufacturing of Lithium-ion batteries and these batteries are used across the world to power small electronics to electric cars.
The falling price of Lithium Carbonate is certainly a piece of good news for the electric vehicle industry, because, it will help to make electric cars more affordable for people. In addition to that, the Copper price has also fallen by 18 percent, which is an essential element for EV batteries. Cobalt is another crucial earthly metal for electric batteries and its price has fallen more than 50 percent. All the factors are showing a good sign for carmakers in making electric cars more affordable.
The falling price of Lithium and other metals is making it easier for carmakers to reduce the prices of their electric cars. Recently, Tesla reduced the price of Model S and Model X, which are again followed in January month and the price of Model 3 and Model Y was also slashed by thousands of dollars, which is a considerable price cut. Apart from Tesla, XPeng and Ford Motors also joined the club and reduced the prices of electric cars in the past few months.
What is the reason for the Falling Price of Lithium?
Some experts think that the continuous price falling of lithium is just for the short term, and it is expected to be increased in the coming future with the demand for clean energy. Few analysts suggest that the price fall is due to the slow growth in sales of EVs in Europe and China market, which is only for the short term.
What are the different types of Batteries used in Electric Cars?
Battery technology has seen immense advancement over the past few decades. The vision of clean and sustainable energy has pushed the advancement of batteries to a great extent. There are mainly two types of batteries used for Electric Cars across the world. They are following.
Lithium-ion Batteries
Nickel-Metal Hybrid batteries are the building block for hybrid vehicles across the world. If you need high energy output and safety, then Nickel-Metal Hybrid batteries are very useful. Because of that, it is majorly used as a power source for Hybrid Cars.
Nickel-Metal Hybrid Batteries
Nickel-Metal Hybrid batteries are the building block for hybrid vehicles across the world. If you need high energy output and safety, hen Nickel-Metal Hybrid batteries are very useful. Because of that, it is majorly used as power source of Hybrid Cars.
Final Words
Lithium plays a critical role in the manufacturing of Lithium-ion batteries and its price is continuously falling since the beginning of 2023. In addition to that, Cobalt and Copper price has also been reduced to a significant extent. All these factors are helping EV carmakers to reduce the price of their EVs, which has already contributed to pacing up the adoption of EVs across the world. Soon, EVs will be in the mainstream.
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