According to Goldman Sachs Research, prices for battery metals used in electric vehicles (EVs) are cooling, which could make EVs more competitive with traditional cars. They estimate that battery prices will fall to $99 per kilowatt hour of storage capacity by 2025, a 40% decrease from the previous forecast. This decline is expected to come from decreasing prices of EV raw materials such as lithium, nickel, and cobalt. As battery prices drop, the EV market could achieve cost parity with internal combustion engine vehicles by the middle of the decade, leading to more extensive consumer adoption. China is currently leading the way in EV adoption, but the market is transitioning to be more consumer-led as battery prices decrease. Goldman Sachs Research also credits new battery technologies, such as novel anode materials and larger battery cells, for the forecasted decline in battery prices. It is important to note that the information in this article is provided for educational purposes and does not constitute a recommendation or advice from Goldman Sachs.
https://www.goldmansachs.com/intelligence/pages/electric-vehicle-battery-prices-falling.html