The current conflict in Ukraine has the potential to affect the production of Electric Vehicles (EVs).
While it is still too early to tell what the full impact of the conflict will be, it is something that EV manufacturers and consumers should be aware of.
If the fighting escalates and spreads to other parts of the country, it could disrupt the supply of critical components needed for EV production a lot more.
This, in turn, could lead to higher prices for EVs or a delay in their production.
It has been said that many manufactures halted production at factories across Europe.
In early February, Renault stopped production at its Moscow factory.
However, it has been said that this week they have restarted the production in the Moscow factory.
Renault are not the only ones that put a pause on the production of EV’s.
According to reports, two Russian factories owned by Volkswagen have been shut down and the export of Volkswagens, Audis, Skodas, Porsches, and Bentley vehicles have been halted.
It has also been reported that, the following companies have halted production at their Russian factories: Toyota, Ford, BMW, Hyundai, and Renault.
The consequences of these events are not limited to Ukraine and Russia.
A shortage of parts has reportedly halted vehicle production in Czech Republic, according to reports.
The closure of factories in Ukraine and Germany has led to shortages of certain components, which have hampered the manufacturing of the Enyaq iV Electric car in Czech Republic.
Some German factories have been forced to pause production due to component supply issues.
Audi and Mercedes have reportedly halted production of certain vehicles due to a lack of similar wiring components, according to reporters.
Meanwhile, MINI production at the Oxford plant has been halted due to reported component shortages.
As the war between Russia and Ukraine continues, it’s likely that the productions of EV’s will be further disrupted.
The price of nickel on the rise
Within the past two days, nickel shot up in price by 250% .
This caused the London Metal Exchange to freeze trading and brought the global nickel market to a standstill.
One of the main components of Electric Vehicles is the battery.
The batteries used in EVs are typically made in Russia and Ukraine.
Batteries in Electric Vehicles require nickel, which is a vital component.
Russia is one of the world’s major producers of the element.
The prospect of sanctions on nickel mining has caused prices to soar.
Reports claim that without the Russian market, there is not enough infrastructure in place to meet the demands of producing the EVs.
It has been suggested that manufacturers should have a stronger focus on lithium-ion batteries.
However, it is acknowledged that these are less efficient than nickel ones.
Lithium-ion batteries are more expensive to manufacture than nickel-iron batteries.
Although, some automakers and other major nickel purchasers like steel producers may be able to locate alternative sources.
Like using recycled material, or switch to battery designs that require less nickel.
Study predicts that EV manufacturing may face a halt until they find a solution.
Problems we may have to face
It is very clear that the war of Russian and Ukraine has caused a lot of problems.
Here you will see some of the problems that could occur.
The main components of Electric Vehicles are the battery, motor, and controller.
In addition, there is a risk that the conflict could lead to employees being laid-off at the EV component manufacturers.
This could delay the rollout of Electric cars and have a negative impact on the environment as a whole.
It is too soon, to know the full extent of the consequences of the Russia and Ukraine War.
However, it is clear that the war could have a significant impact on this growing industry.
We will need to keep an eye on the situation to see how it develops.
What does this mean for the UK?
The invasion has had an impact on certain UK exports.
After difficulties with distribution and payment systems, along with the declining value of the Russian rouble, many major car manufacturers in the United Kingdom, such as Jaguar Land Rover and Aston Martin, have halted vehicle deliveries to Russia.
Cars were the UK’s most valuable export to Russia last year, according to the data from the Office for National Statistics.
Inchcape, a British car retailing firm, announced that it is transferring control of its Russian dealers to a local entrepreneur, incurring a £750 million loss in the process.
Around 5% of Inchcape’s revenue comes from Russia, where it sells cars for 11 manufacturers, including, BMW, Jaguar, Land Rover, Mini, and Rolls-Royce.
Dealerships that are run by individuals are currently still open, although they have had to raise prices on remaining inventory by 30% to reflect the depreciation in the rouble.
The next step
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