Here's Why EV Demand Continues To Soar Amid Odds

Global EV sales in the first quarter jumped nearly 120% Y/Y even with sticker prices surging, contradicting the decade and a half myth of EV sales breaking out only after battery costs dropped below a threshold, Reuters reports.
The 2022 EV demand has stayed strong even as the average cost of lithium-ion battery cells soared to an estimated $160 per kilowatt-hour in Q1 FY22 from $105 last year, thanks to supply chain disruptions, sanctions on Russian metals, investor speculation, and environmental concerns.
Gasoline and diesel fuel costs for internal combustion vehicles also skyrocketed since Russia invaded Ukraine.
The report noted that higher battery costs added $1,500, equal to 30% of China's best-selling smaller EV sticker price like the Hongguang Mini. Mercedes-Benz Group AG DMLRY also looks to follow suit to counter the surging raw material prices. Experts see the trend continuing due to the battery industry's wafer-thin margins.
Experts predict another significant drop in battery prices due to big-ticket investments by automakers and suppliers in mining, refining, and battery cell production and a move to diversify raw material sources.
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