Neggtions with Shenghe, page-6

The previous round of battery metal price increases has added to EV makers’ profit pressure. The increasing electrification of the global economy requires vast amounts of minerals, and the rapid electrification that kicked off around 2020 “overwhelmed the metals market,” Bhandari says. But now supply is catching up and cooling the market for the likes of nickel and lithium that are used in batteries, which can be one-third of the cost of an EV.

In a few months, lower metal prices should start to flow through to EV makers. “The good news is battery prices are now falling rapidly,” Bhandari says. Goldman Sachs Research expects a nearly 40% decline in battery prices between 2023 and 2025, and for EVs to reach breakthrough levels in terms of cost parity (without subsidies) with internal combustion engine cars in some markets next year. Longer term, our analysts project EVs to take a considerably higher share of car sales, reaching 50% in the US and 68% in the EU by 2030.

https://www.goldmansachs.com/intelligence/pages/even-as-ev-sales-slow-lower-battery-prices-expect.html