The cost of electric vehicles (EVs) has been declining in recent years thanks to advances in battery technology. However, this trend could be reversed due to soaring prices for key raw materials used in EV batteries.

The price of cobalt, a key ingredient in lithium-ion batteries, has nearly tripled over the past 18 months, while the price of lithium has doubled. This is largely due to increased demand from the EV sector, which is expected to grow exponentially in the coming years.

These raw material price hikes could put pressure on EV manufacturers to raise prices or reduce margins in order to maintain profitability. This could in turn lead to a slowdown in the adoption of EVs, which are still struggling to compete with cheaper gasoline-powered cars.

The good news is that battery technology is constantly evolving and there are already alternatives to cobalt and lithium being developed. If EV manufacturers can find ways to reduce their reliance on these raw materials, then the cost of EVs is likely to continue falling in the long run.