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Metals Key for EVs Will Be Pricier for Longer After Record Year

  • Supply concerns persist with omicron clouding prospects: BNEF
  • Lithium prices to stay elevated, but nickel may see a decline
Electricity Billionaire Is Building the Tesla of Thailand
Photographer: Brent Lewin/Bloomberg

Metals vital for making rechargeable batteries in electric cars are set to extend their stunning rally into 2022, potentially increasing costs for automakers and blunting a key weapon in the race to slow climate change.

Battery metals are in the throes of an unprecedented boom as the global push toward a greener future fires up demand for materials such as lithium, cobalt and nickel, at a time of constrained supply exacerbated by the pandemic. That will probably boost battery costs and could delay the widespread adoption of electric cars. Now the omicron variant is complicating matters even more.