Rising costs of metals used in the electric car sector

The price of nickel, lithium and cobalt, which are important raw materials for batteries and therefore electric cars, has risen since the Russian invasion of Ukraine. Garbriela Herculano, bequest of iClima UCITS ETF (ECLM) Global Decarbonization Enablers He explains why rising metal costs have not affected the history of electric cars.

On the face of it, the rising costs of critical efforts for electric car batteries are worrisome. The story behind electric cars and other attempts at CO2 emissions is that costs are coming down — and these technologies are deflationary. So the price hike seems worrying. However, we must put this in perspective – the metal is inserted from electric cars And the batteries do not rise in isolation. All kinds of metals from copper, steel, aluminum to rhodium, PalladiumAnd platinum The price has gone up since the beginning Russia The war against Ukraine. It’s not just electric vehicle that require certain metals – and so do conventional gasoline cars. For example, one of the largest users of rhodium is gasoline-powered cars. It is used in engine exhaust to neutralize harmful nitrous oxide.

The most recent price increases for batteries and electric cars should be placed in greater context: Empirical evidence collected since the 1970s shows a historic decline in the cost of lithium-ion batteries, which are currently the most important chemistry in both stationary and mobile batteries. With long-term deflationary trends lowering the cost of electric vehicles (despite short-term increases in supply chain and commodity prices), extremely low maintenance needs and a rising price of gasoline at the pump, electric vehicles are set to increase market share due to competitive pricing.

“Electric vehicles (EV) are a solution to our urgent need for carbon dioxide emissions in transportation. In 2021, global sales of electric vehicles doubled. According to the EV Volumes database, global sales of battery-powered electric vehicles (BEV) and plug-in hybrid electric vehicles have overtaken (PHEVs) in the global market for light vehicles (passenger cars and light commercial vehicles) 6.7 million units in 2021, corresponding to 8, 3% of total sales in this segment.This volume translates to 108% growth in 2020. China dominated on sales with nearly 3.4 million BEVs and PHEVs sold, more than 50% of the total, followed by Europe with over 2.3 million units and North America with 0.73

Trading ECLM ETFs

iClima UCITS ETF (ECLM . global decarbonization enablers)) is a European fund that is traded on the stock exchange. This fund is traded on many different exchanges, such as Borsa Italiana, Deutsche Boerse Xetra, Euronext Amsterdam and the London Stock Exchange. For this reason, different acronyms appear on the same ETF.

This means that it is possible to trade units in this ETF through most Swedish banks and online brokers, for example DejeroAnd nordnet And keep it up.

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