Carmakers face soaring metal costs with Russian supplies at risk | Malay Mail

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LONDON, March 8 — Saving up for a new ride? Better start putting more cash aside. Russia’s invasion of Ukraine is ramping up the price of metals used in cars, from aluminium in the bodywork to palladium in catalytic converters to the high-grade nickel in electric vehicle batteries, and drivers...

Andreas Weller, chief executive of Aludyne, which makes aluminium and magnesium die-cast parts for automakers, said his European business has seen a 60 per cent rise in the cost of aluminium over the past four months, as well as soaring energy bills.

According to consultancies LMC and J.D. Power, the average transaction price for a new vehicle in the United States was US$44,460 in February, up 18.5 per cent from the same month in 2021. Austria’s Voestalpine and Sweden’s SSAB are both exposed to this risk, according to US investment bank JPMorgan. Russia is a big manufacturer of aluminium, the most energy-intensive metal to produce, accounting for 6 per cent of global output.Caspar Rawles, chief data officer at specialist consultancy Benchmark Mineral Intelligence , said that while Russia accounts for 5 per cent of global nickel production, it supplies about 20 per cent of the world’s high-grade nickel.

Batteries are one the most expensive components in EVs and automakers have been hoping they will become cheaper so they can offer more affordable electric cars.

 

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