Lower lithium costs a balm for carmakers: With falling EV prices aimed at reviving slumping demand, declining materials prices could be just what's needed.

Lower prices for key materials like lithium are reducing the cost of electric vehicle (EV) batteries, which is beneficial for automakers who are lowering vehicle prices to boost demand. The declining prices of lithium, cobalt, nickel, and other materials are lowering battery costs, allowing automakers to maintain margins while making EVs more attractive to consumers. The drop in materials costs is reflected in the financial results of companies like LG Energy Solution and General Motors. However, battery companies still face challenges in reducing costs to meet the affordability barrier, especially with competition from Chinese companies offering cheaper battery packs. The decline in materials costs could potentially lead to cheaper EV prices and increased demand. [Extracted from the article]