Easy one. Let’s start with say $10k per tonne carbonate. A...

Easy one.

Let’s start with say $10k per tonne carbonate.
A 100kWh battery pack requires circa 90kg LCE afaik.
Let’s call it 100kg to make things easier.
100kg = $1000

If the price goes to say $30k per tonne, this means circa $3000 of LCE.

Now, ignoring the fact that this increase is continually cushioned by cost savings via economies of scale and manufacturing efficiencies (DYOR on the decline in battery costs over the last decade), what’s the “worst case” impact on the price of your 100kWh EV...?
An extra couple of grand?
That’s less than the fancy alloy whee option, or the carbon fibre pack, or the metallic paint, or the premium sound package, or the etc etc etc.

I’ve said it many times before - if your $60/70/100k EV costs an extra couple of grand, or the option is to wait in line for 3 years because the supply is lagging, what on earth do you think consumers will do?
Pay the extra $2k and have their car.
Hence incentive pricing for new suppliers to get their sh!t together, but it still takes years and years for them to get to production. Squeeze time.

Look at the rate of decline of battery cell/pack cost. This will offset that $2k within a year or two, so in reality, the price of that 100kWh pack kinda stays flat or still decreases anyway, even if LCE is $30k/t.

Squeeze time.



DYOR !!