11 March, 2022
Posted by: Jorge Platero
Category: Faconauto News
The interest in electric vehicles is increasing, although other risks appear, such as the rise in the price of electricity or problems with nickel for the manufacture of batteries.
The automotive sector is experiencing a perfect storm. To supply problems, technological uncertainty and the barrage of new trends, we now add the consequences of the war in ukraine. The increase in gasoline prices is already a reality that is leading many consumers to look towards the electric vehicle. But what will happen? On the one hand, new opportunities are opening up for the advancement of electrification; and on the other, there are risks that can stop their arrival.
According to Copilot, an American shopping application, after the explosion of the conflict in Ukraine, an increased search for electric and hybrid vehicles is being seen. However, they indicate that this type of technology is also suffering from price inflation, so fuel savings could be lower than expected.
Also, another reason that electric vehicles may not be a safe haven for those looking to save money has to do with raw materials. Russia plays an important role in the production of nickel, a key material for the manufacture of electric vehicles and whose price has skyrocketed even faster than oil.
nickel sky high
On February 25, nickel was trading on the London Metal Exchange at about $24,000 a tonne, according to The Wall Street Journal . By March 8, it was trading at $80,000. However, according to Bloomberg and Reuters, nickel prices were already becoming a problem for electric vehicle manufacturers even before the invasion.
For this reason, many manufacturers are already working on the option of making nickel-free batteries. Volkswagen and other big brands are looking at other technologies or alternative materials like cobalt.
To this fact we must add the incessant growth in the price of electricity. A barrier that stops the final consumer. It will be necessary to see then if the high price of gasoline produces a change in the trend in the consumer towards decarbonization and definitively embraces the electric vehicle.
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