According to SNE Research, South Korean battery producers might boost prices by 30% to 40% to cover rising commodity costs, and they are in negotiations with electric car makers about new long-term contracts.
"We had a meeting with Korean cell makers recently that led us to adjust the outlook for prices of electric-car batteries,” SNE Executive Vice President James Oh said at a seminar Wednesday. “They say battery prices are highly likely to rise by 2024 or 2025.”
While the companies did not specify how much they may raise costs, those using lithium, nickel, cobalt, and manganese might raise battery pack prices by up to 40% by 2025, Oh told Bloomberg News on the margins of the event.
According to SNE Research, the typical lithium-ion battery pack for an EV last year cost between $147 and $153 per kilowatt-hour. Batteries contribute for around 30% to 40% of the cost of an EV.
Volkswagen Group is one of them, and its partner, SK On, is expected to reveal a prismatic strategy shortly, according to him. Samsung SDI is the sole South Korean battery manufacturer with cell production technology.
"You need to be a bit careful with handling pouch-type cells, which have a higher possibility of swelling than prismatic ones,” Samsung SDI Vice President Lee Tae Kyung said during a presentation on battery safety.