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EV Prices Could Rise After Steady Decline

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Dec. 2, 2021—After years of steadily declining due to improved access to new technology, the cost of new EVs is projected to rise in 2022. 

According to data from BloombergNEF researchers cited in an Axios report, the average price of a lithium-ion battery pack is expected to rise to $135/kilowatt-hour due to "soaring costs for minerals and other raw materials." The projected 2.3 percent increase in average new vehicle price would represent the first hike in a decade. 

"This creates a tough environment for automakers, particularly those in Europe, which have to increase EV sales in order to meet average fleet emissions standards," says James Frith, BNEF's head of energy storage research. "These automakers may now have to make a choice between reducing their margins or passing costs on, at the risk of putting consumers off purchasing an EV."

Though the report suggests a industry-wide target of $100/kilowatt hour is still attainable, it might take a few years longer to get to that point due to higher commodity prices. 

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