- The cost of raw materials needed to make electric vehicles is rising, CNBC reported.
- The average cost in raw materials was around $8,255 per vehicle in May, the outlet reported.
- EV manufacturers including Tesla have increased the price of their cars.
The cost of producing electric vehicles soared in the last two years, with the price of the raw materials needed to build the cars more than doubling since the start of the pandemic, CNBC reported citing research from consulting firm AlixPartners.
The average cost of raw materials — including the cobalt, nickel, and lithium needed to make EV batteries — was around $8,255 per vehicle in May, the outlet reported, citing AlixPartners' research.
That cost represents an increase of more than 140% from the $3,381 in raw materials it cost to make an electric car in March 2020.
High raw material costs come amid ongoing supply chain disruptions across the EV industry. The war in Ukraine has helped push prices even higher given Russia is a key exporter of some of the metals used in the production of battery cells.
Many EV manufacturers are increasing the price of their cars, partly because of the rising cost of raw materials.
Tesla has enacted price hikes across all models, with the cost of a Model X rising as much as $6,000, Insider's Bea Nolan previously reported. The electric car giant has also been struggling with supplies of computer chips as a result of ongoing supply chain issues and staff layoffs.
Ford and EV startup Rivian have also increased the cost of their vehicles. Ford previously said the rising cost of raw materials had hampered profitably, multiple outlets reported.
AlixPartners predicted the high costs would cause a lag in new product launches, but would not affect the growing number of EVs on the market, CNBC reported.
Interest in electric cars has increased as a result of high gas prices, but the rising cost of electric options is putting the vehicles more out of reach for many ordinary consumers.
According to the car-buying site Edmunds, the average price paid for a new EV hit $60,054 in February. That price spiked to $60,984 in May, Bloomberg reported, citing Edmunds.