However, a report by Benchmark Source (https://source.benchmarkminerals.com/article/chinese-lithium-prices-almost-halve-from-november-peak-as-demand-weakens) indicates that the price of lithium, which is used in EV batteries, has dropped considerably along with other essential battery materials, such as cobalt and copper. This is great news for consumers as it means manufacturers can pass along the savings to them.
Some manufacturers have wasted no time making their EVs more affordable, with Tesla cutting the prices of its two most expensive vehicles. It is not the first time that Tesla has adjusted prices this year either, starting with reduced prices across all of its markets in January. The entry-level Model S Dual Motor All-Wheel Drive and the higher-performance Model S Plaid saw their cost reduced by $5,000, while the same trims of the Model X lowered their prices by $10,000. A report by Kelley Blue Book (https://mediaroom.kbb.com/2023-03-08-New-Vehicle-Transaction-Prices-Trend-Downward-as-Incentives-Rise,-According-to-Kelley-Blue-Book) has indicated that Tesla has been able to reduce costs and deliver higher sales volumes.
According to some analysts, EV sales in Europe and China have slowed after subsidies for purchases expired, which could be why lithium prices are falling. However, there are also experts who believe it is new mines and processing plants for lithium that are bringing down prices. In an interview with CNBC, Matty Zhao, Bank of America Securities’ head of Asia Pacific basic materials, stated that they expect a 38% lithium supply growth this year (https://www.cnbc.com/2023/03/07/bank-of-america-sees-lithium-surplus-in-2023-as-demand-eases.html).
