This, in turn, has allowed EVs to become more affordable. Reports state that since January, prices for Lithium have dropped by nearly 20 per cent.
This along with the price drop of Cobalt & Copper, other materials used in producing batteries, has made it easier for carmakers to cut down prices of their electric vehicle offerings.
Tesla has cut down prices by thousands of dollars across its entire model range, including its two most expensive cars, the Model S and Model X.
Apart from Tesla, Ford has also cut down prices of its EV offering, the Mustang Mach-E.
As per the Kelly Blue Book, the average price of electric vehicles in the United States of America dropped by $1000 in February, when compared to the previous month of January 2023.
Also, Kang Sun, Chief Executive of Amprius Technology, a young battery maker stated that the major roadblock for EVs is its cost, hence the falling prices of lithium, which should help promote EV sales.
He also added that prices of lithium could fall further as demand for the metal hasn't risen as fast as the industry expected.