For automakers, 2023 began with chronic shortages and soaring prices of key metals used in batteries. Electric vehicles were in short supply and consumers seemed prepared to buy any EV they could get their hands on almost regardless of the price.

The year could hardly be ending more differently: The world is unexpectedly awash in battery-grade lithium and nickel, pushing down their prices 76% and 44%, respectively, year to date. Carmakers—worried about tepid EV sales growth compared with their lofty expectations—have slashed EV prices to eliminate unanticipated inventory on their sales lots, and scaled back plans for future assembly plants. Last week, Ford cut the capacity of a new lithium-iron-phosphate battery plant it is building in Michigan by 43%, after previously slashing planned spending on EV development this decade by $12 billion. General Motors suspended plans to launch its electric Cruise robotaxi in more than a dozen cities, leaving it only in San Francisco, The Wall Street Journal reported. The company also mothballed the Origin, a six-passenger electric autonomous shuttle outfitted with Cruise technology that began production this year.