Here's Why EV Demand Continues To Soar Amid Odds

Here's Why EV Demand Continues To Soar Amid Odds
  • Global EV sales in the first quarter jumped nearly 120% Y/Y even with sticker prices surging, contradicting the decade and a half myth of EV sales breaking out only after battery costs dropped below a threshold, Reuters reports.
  • The 2022 EV demand has stayed strong even as the average cost of lithium-ion battery cells soared to an estimated $160 per kilowatt-hour in Q1 FY22 from $105 last year, thanks to supply chain disruptions, sanctions on Russian metals, investor speculation, and environmental concerns.
  • Gasoline and diesel fuel costs for internal combustion vehicles also skyrocketed since Russia invaded Ukraine.
  • The report noted that higher battery costs added $1,500, equal to 30% of China's best-selling smaller EV sticker price like the Hongguang Mini. Mercedes-Benz Group AG DMLRY also looks to follow suit to counter the surging raw material prices. Experts see the trend continuing due to the battery industry's wafer-thin margins.
  • Experts predict another significant drop in battery prices due to big-ticket investments by automakers and suppliers in mining, refining, and battery cell production and a move to diversify raw material sources.
  • Photo via Wikimedia Commons

Posted In: BriefsNewsTop StoriesTech

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.