Morgan Stanley: € 1,000 increase for each electric car due to rising nickel price

Electric cars, despite the problems faced by the automobile, continue to grow in sales. Analysts say global demand for electric vehicles will increase by 2030, with annual unit sales ranging from 6.5 million to about 40 million each year as we approach the year that sales of internal combustion engine models are phased out. .

The biggest problem faced by manufacturers is the difficulty in supplying several raw materials. The basic elements of the battery are hard to find and manufacturers are constantly forced to make new deals in order to have a sufficient supply of materials.

For example, nickel, which is already moving for three-month contracts at the price of 90,000 euros, is showing upward trends. Its rise is of the order of 62.7% compared to the pre-war situation. This results in a cost increase of at least € 1,000 per electric car, according to Morgan Stanley.

Battery manufacturers, wanting to break the deadlock, but also to keep the price of the battery low, are trying to find alternatives by replacing certain elements (nickel or cobalt).

On the other hand, public charging infrastructure in each country has large gaps and prevents many from acquiring electric cars. All this if the owners do not have a secured parking space at their disposal.

The solution to the problem will be the increase of the autonomy and the charging speed. There is a belief that very soon there will be quick chargers that will charge to 10% of the battery capacity in just one minute. This essentially solves the problem. If the technology is perfected, then a long trip by electric car will not be a big problem. This is because after 200-300 kilometers the driver will be able to charge his battery in a short time, at the same time that he will rest to continue his journey.

SOURCE: AMPE