The electric car revolution will stall in the West if supplies of crucial battery elements like lithium fail to keep up with the forecast huge increase in demand.
This will drive battery prices higher, decimate profit margins, and the coveted $100 per kWh battery, which would have signaled the arrival of affordable green vehicles, will remain on the launch pad.
“Western weaknesses in lithium-ion supply chains will slow electric vehicle adoption and demonstrate China’s dominance of the EV (electric vehicle) market,” according to a report from GlobalData. a leading data and analytics company. This kind of pressure might also delay Tesla’s long promised “affordable” $25,000 electric car.
The report said EV output is set to “skyrocket” to 12.76 million cars a year by 2026, with over half coming from China. “With lithium prices set to rise throughout the next decade, the EV sector in the West will have to face rising battery costs.