The Russian invasion of Ukraine has caused a rise in the prices of metals used in cars – from aluminum in bodywork to palladium in catalytic converters, to high-quality nickel in electric vehicle batteries – and it is customers are likely to pay the bill.
Tesla and SpaceX were not available for additional comment, according to Reuters.
Rising commodity prices have raised concerns about the electric vehicle market as traditional firms and start-ups prepare to launch new models after overcoming problems related to semiconductor shortages.
In addition, geopolitical issues stemming from the invasion of Ukraine have affected factory operations in the United States and are making it difficult for raw material suppliers to list.
“Just when an easing of semiconductor shortages was expected … the invasion has led to further disruptions in the supply of essential materials and a worrying rise in prices,” said Susannah Streeter, an analyst at Hargreaves Lansdown.
Wells Fargo analysts said prices for nickel, a key material used in batteries, have risen 130%, while prices for cobalt, lithium and aluminum have soared between 16% and 88% this year.