Soaring Nickel Will Drive Tesla, EV Players to Do This With Batteries


  • Order Reprints

  • Print Article

A basket of metals that go into lithium ion batteries is up 64% so far in 2022, which theoretically raises the sticker price of an average electric vehicle.


Ronny Hartmann/AFP via Getty Images

Inflation is hitting the electric vehicle supply chain as the prices for metals that go into batteries soar. It isn’t all bad news, though. Inflationary pressure will drive EV makers to innovate faster. In the long run, that will result in cheaper EVs.

In the short run there is a lot of pain, though. A basket of metals that go into lithium ion batteries Barron’s tracks is up about 64% so far in 2022. That, theoretically, raises the sticker price of an average EV by as much as $2,000.

Rising…