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Employees inspect a Rivian R1T electric vehicle (EV) pickup truck on the assembly line at the company’s manufacturing facility in Normal, Illinois, US, on Monday, April 11, 2022.

Jamie Kelter Davis | Bloomberg | Getty Images

Raw material costs for electric vehicles have more than doubled during the coronavirus pandemic, forcing automakers to quit, according to a new report from Alixparts Wednesday. General Motors And Tesla like for start-ups lucid And rivian To significantly increase prices on new vehicles.

Average raw material costs for EVs totaled $8,255 per vehicle as of May, up 144% from $3,381 per vehicle in March 2020, led by materials such as cobalt, nickel and lithium – all of which are essential for the economy. battery production Used to power electric cars and trucks. According to AlixPartners, EV-specific costs have increased from about $2,000 to $4,500 in the past two years.

Cost increases are not limited to EVs: raw material costs for conventional vehicles with internal combustion engines have also nearly doubled to $3,662 per vehicle during that time period, up 106% from an average of $1,779 per vehicle in March 2020 is more. This increase is due to the increase in steel and aluminium.

The cost spikes come as automakers aggressively launch new EVs over the next several years. AlixPartners predicts that the number of EV models available in the global market will increase from 80 last year to more than 200 by 2024.

As a result, AlixPartners expects higher costs to force a relative slowdown in EV launches, as automakers move away from pushing electric vehicles to market as soon as possible and refocus on profitability.

ford motor CFO John Lawler said last week that rising commodity prices had wiped out the profits it had initially hoped for. Electric Mustang Mach-E, While the vehicle was profitable when it was first launched in late 2020, he said that is no longer the case.

Meanwhile, automakers are raising prices for buyers.

GM announced on Friday it would raise its price Electric Hammer $6,250, The automaker attributed the higher prices to parts, technology and logistics. Tesla, Rivian, Lucid and others announced earlier Significant increase in initial cost of their EVs.

—CNBC john rosevier contributed to this article.

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