Following the failure of its competitors, notably Tesla Inc., due to quarantine in Shanghai, Chinese manufacturer BYD has once again become the world’s largest provider of electric vehicles in the world’s largest market.
BYD, the Warren Buffett-backed automaker, is also developing plans to gain a long-term competitive advantage by becoming more actively involved in lithium mining, a vital raw element for electric vehicle batteries.
Battery prices to rise for the first time in more than a decade
After a year of escalating expenses that prompted many manufacturers to boost list prices, automakers are considering getting more involved in their supply chains, including mining and processing base metals for batteries.
For the first time in more than a decade, electric vehicle battery prices are anticipated to rise this year, and higher inflation might push back the day when electric vehicles become as affordable as traditional cars.
For much of this decade, ensuring enough supplies of raw materials will likely be the main concern for all automakers, according to Seth Holstein, strategist with Morning Research Services in Chicago.