Science

Why the price of electric cars will rise until 2026

The arrival of the electric car was accompanied by the promise of lower prices over time. This is also one of the arguments in favor of the mass introduction of “zero emissions” in the future. But that was before.

The current context is indeed changing the situation, and electric vehicle prices may very well come down. Basically, we are talking about the price of batteries, which should increase due to supply difficulties.

First of all, the lack of lithium is of concern, especially in the second half of the decade. As such, Fastmarkets predicts that lithium supply will fall significantly through 2026 compared to demand.

We also have proof of this by noting the rise in value of rare material mines. In China, the company sold shares to become the majority shareholder and control a mine in Sichuan province.

Stellantis electric vehicle logo

She collected 3,448 auctions to finally sell her 54.3% stake for $299 million. A price that is 600 times higher than what was fixed at the start.

Such a battle for control of the mine is proof that lithium will become valuable. Thus, we understand the desire of manufacturers to reduce or even eliminate the share of lithium, even if this is not enough.

According to CNBC, the market will indeed take a storm over the next four years. As a result, the price of batteries, and therefore electric vehicles, will skyrocket.

Situation that will improve after 2026

This increase can be in the range of 1500 to 3000 euros per vehicle. The current cost of a battery per kWh is 116 euros, but in 2026 it could rise to 138 euros.

Not everything is negative, as prices should drop sharply from this date. But 2026 was the originally announced date for the alignment of electricity and heat prices.

This will not happen, and everyone will have to make an effort to encourage the adoption of electric vehicles until 2026. This is mainly due to governments through bonuses and manufacturers who are struggling to achieve “zero emissions”. A situation that promises to be difficult, ultimately with users unable to switch to electricity as quickly as they would like.

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