Why Investors Shouldn't Worry About EV Battery Prices -- Yet
With the rise of electric vehicles, the commodities that go into batteries, like nickel and cobalt, are becoming more valuable. Without getting too deep into the chemistry of a lithium-ion battery, a combination of elements make up the cathode portion of a battery, with lithium making up the anode. The larger the electrochemical potential difference between the anode and cathode, the higher the battery capacity. There are many types of ions that can be used in lithium-ion batteries, but nickel-cobalt-aluminum (NCA) is the recurrent battery composition that produces the highest capacity -- something consumers prefer in their electric vehicles (EVs).
The prices of these commodities have continued to rise, causing EV manufacturers to raise the prices of their vehicles as well. With more EV manufacturers ramping up production, a supply crunch could cause these prices to rocket even higher. Will this cause consumers to switch back to petroleum-powered vehicles or will EVs continue their rise?
Source Fool.com
