Hyundai expects the prices of electric vehicles to plateau by 2020 due to supply restraints.
In recent years, the costs of plug-in hybrid and electric vehicles have decreased rapidly, especially for the batteries themselves. The South Korean carmaker doesn’t believe this trend will continue for much longer.
“Not a single ingredient is going in a positive direction in terms of pricing,” Hyundai Motor senior vice president Lee Ki-sang told Reuters.
“So far battery prices have been declining at a rapid pace, but the pace will moderate significantly or maintain the status quo by 2020.”
In the five years to 2016, lithium-ion battery cell prices have decreased by roughly 60 per cent. However, as more and more carmakers begin to produce EVs, demand for minerals including nickel, cobalt, and lithium required for batteries will rapidly rise. Consequently, supplies of these key ingredients could be stretched.