The abrupt electrification of the auto industry has been fueled in large part by a steep drop in the cost of their batteries, bringing the price of electric cars closer to parity with traditional vehicles. But the International Energy Agency says those declines are about to end—and reverse.
A surge in the price of critical metals is on track to push the average cost of lithium-ion batteries to about $150 per kilowatt-hour this year, a 14% jump from 2021, the IEA said Monday. It would be the first annual increase in the average cost of an EV battery in at least 12 years.
