Bigger battery metal costs could keep electric cars expensive

There are some signs of relief for carmakers, however, with lithium, cobalt and nickel prices retreating or steadying in recent weeks

An electric car charging PA file photograph

A surge in battery metal prices means it could take several years longer for electric vehicles to become as affordable as conventional cars, according to BloombergNEF.

Prices of lithium, cobalt and nickel have soared in the past year, eating into EV makers’ margins at a crucial point in the development of the burgeoning industry. With demand climbing, they now face a dilemma: swallow the incremental costs, or try passing them on to consumers.