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The auto industry is betting billions that electric vehicles will soon be as cheap as conventional cars, but a number of challenges must be met before that becomes a reality. One is that the price of motors will have to decrease: the average electric drivetrain still costs $10,000 more than the conventional counterpart. This is dependent on battery prices, however, which is another issue in itself.
Manufacturers are dealing with a geopolitical dimension. Three-quarters of the world’s reserves of lithium, a crucial ingredient in the most common kind of electric car battery, are in China and Chile, according to the United States Geological Survey. As demand surges, China could deploy its natural resources as a diplomatic cudgel the same way that Saudi Arabia uses oil.
Manufacturers are dealing with a geopolitical dimension. Three-quarters of the world’s reserves of lithium, a crucial ingredient in the most common kind of electric car battery, are in China and Chile, according to the United States Geological Survey. As demand surges, China could deploy its natural resources as a diplomatic cudgel the same way that Saudi Arabia uses oil.