The price of electric batteries continues to decline, yet threatened

With the exception of Toyota, which weighs the general excitement, all car manufacturers agree on the generalization of electric. Most roadmaps converge on the 2030 horizon. Therefore, the demands around production and the supply chain are pressing.

In this game, China manages to respond more effectively in its market with the lowest prices (111 dollars/kWh) when battery packs can be 40 to 60% more expensive in Europe and the United States. Such differences highlight an immature market with a wide variety of applications between high-end and custom controls.

In the short term, the rise in commodity prices should increase the average price of batteries and could end up at 135 dollars/kWh in 2022. An increase which could delay the target of 100 dollars/kWh. This would directly impact the consumer and their ability to acquire electric vehicles, as well as manufacturers' margins, and therefore slow down the clean energy economy.

Kwasi Ampofo, head of metals and mining at BloombergNEF, said, “Lithium prices have risen significantly this year due to constraints within global supply chains, growing demand in China and Europe, and recent production cuts in China. Although we expect demand to continue to grow in 2022, other factors such as global supply chain constraints and China's production bottlenecks should have been resolved by the first quarter. 2022. This will help drive down lithium prices.”