Lithium Ion Batteries Are the Obstacle
The average EV now costs around $65,000. To make nationwide EV adoption a reality, the price of EVs must come down, and the solution lies within the battery. 40% of the overall cost of an EV is tied to its battery pack. The availability of raw materials such as lithium and cobalt has combined with supply chain challenges to increase finished battery costs significantly over the past year, with no relief in sight. American automakers need to figure out how to reduce EV prices and increase production, and quickly as a significant percentage of the world’s lithium ion battery supply chain is controlled by China.
The solution lies with alternative battery chemistries that avoid the use of lithium, cobalt, and other expensive metals in favor of more common, cheaper ones that can be readily sourced from a diverse range of free-trade partner countries. Diversifying the battery supply chain can yield cheaper batteries, and by extension, cheaper EVs.