Americans are paying $54,000 on average for an electric vehicle. A year ago, they were paying closer to $44,000.

·2 min read
A Model Y electric vehicle stands on a conveyor belt at the opening of the Tesla Gigafactory Berlin Brandenburg.
The cost of raw materials needed to make EV batteries have jumped by 140% since March 2020, according to data from Alix Partners.picture alliance / Contributor
  • The average price paid by Americans for EVs jumped 22% in the year to May, data from JD Power shows.

  • For non-EVs, inflation over the same period was 14%, according to the data, cited by The WSJ.

  • Americans are now paying $54,000 on average for EVs and $44,400 for non-EVs, per JD Power.

Americans are paying $54,000 on average for an electric vehicle (EV), a surge of 22% in a year, figures show.

Meanwhile, Americans are paying $44,400 on average for fossil fuel-powered vehicles, representing a gain of 14% in the year to May, research by JD Power, cited by the The Wall Street Journal, found.

Automakers are hiking prices to offset the soaring cost of raw materials. Long-running supply chain challenges, exacerbated by the war in Ukraine, has caused the cost of materials like nickel, cobalt, and lithium — all of which are essential ingredients for EV batteries — to surge.

Video: Why it's so hard to recycle electric car batteries

In March 2020, it cost on average $3,381 to gather the raw materials needed for a single EV, but that cost is now $8,255, up 140%, according to Alix Partners.

The EV price spike is causing a headache for motorists who want to ditch fossil fuel-powered cars to avoid record gas prices. The average cost of regular gas was last put at $4.90 a gallon by the American Automobile Association, down from above $5 earlier in June but well up from $3.10 a year earlier.

Online searches for EVs have increased 73% since January, according to data from auto-shopping websites Kelley Blue Book and Autotrader, per The WSJ.

EVs represented 4.5% of US car sales in 2021, according to the International Energy Agency.

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