As we know, electric cars are still very expensive, although their prices are still falling over the years due to the development of technology. But there is an element that significantly increases the cost of vehicles – this is the battery. Indeed, according to specialists, it will be no less than 60% of the total cost of the car. Suffice it to say that the room for maneuver to lower the price of the vehicle is therefore quite low. Especially since lithium has risen in price significantly over the past few months, with a price of 80,000 euros per ton.

There is one exception to the end of sales of diesel cars in 2035, voted by the European Parliament: luxury cars (Ferrari, etc.). Of course, there are not many of them, so the emissions will be limited, but for the symbol and social justice will have to be ironed pic.twitter.com/6gPS9lc6ZE

— Audrey Garric (@audreygarric) June 9, 2022

Broken down prices

Thus, manufacturers are forced to regularly change suppliers to find the cheapest. It is in this foggy period CATL, the Chinese battery giant wants to hit the ground running to attract brands. So he decided to enter into a new contract that would allow them to benefit from lithium at a fixed price regardless of the market, provided they committed to supply 80% of CATL. But be careful as this offer only applies to Chinese manufacturers who could take advantage of it lower prices and become more attractive.

Smart strategy

The strategy appears to be a response to Tesla’s price cuts a few weeks earlier, allowing Chinese manufacturers to better compete with the American brand. So at the moment we shouldn’t be taking advantage of the price cuts at home, except maybe for the MG, which has already been on sale in France for over three years. Other brands like Nio or Xpeng should also take advantage of this great deal.