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Lithium price drop gives Indians hope for more affordably priced EVs

2023-04-07

Prices for lithium carbonate, the main ingredient in batteries, have significantly decreased over the past several months, giving industry participants hope that reasonably priced electric cars (EVs) could draw more consumers to the market.

The cost of the main component decreased from $ 73,000 per metric tonne in January to $ 34,000 in March. Cobalt and nickel, two more materials frequently found in batteries, have seen considerable drops in price during the past two months.

One potential explanation for this dramatic fall is a substantial decline in EV sales in important markets like Europe and China due to the termination of government subsidies.

The reduction in lithium pricing can be ascribed to the decline in EV demand in China, where the subsidies have been eliminated.

The price of the previously expensive raw material has significantly decreased as a result of the installation of additional refining capacity throughout the world and alternative battery technologies.

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