Why Ukraine crisis is terrible news for EV makers
According to a New York Times report, Ukrainian researchers have speculated that the country’s eastern region holds close to 500,000 tones of lithium oxide, a source of lithium, which is critical to the production of the batteries that power electric vehicles . That preliminary assessment, if it holds, would make Ukraine’s lithium reserves one of the largest in the world, it added.
If lithium availability issue worsens then EV makers will find it difficult to march ahead with their bullish plans on EV production. Further, the sector will have to face rising battery costs and if they pass their rising input costs on to the consumers, EV adoption will see a slower rate of growth than previously expected.
The consistent increase in demand was already hit by the outbreak of coronavirus and economic downturn, making the future of EV sales uncertain. On top of this, the Russia-Ukraine crisis is putting additional strains on supply chains for the automotive sector. Cost of making batteries we use in our scooters is rising by up to 100 % !
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