As prices for raw materials rise further as a result of Russia’s invasion of Ukraine, we look at the what the impact could be
Traditional automotive materials are also going up in price. On 7 March, aluminium hit record highs, while Stellantis’s Tavares on 8 March called for the US and Europe to cut tariffs on imported steel, currently around 25%."We need more competition, or more production,” he said.
Autoliv, a maker of steering wheels, airbags and seatbelts among other parts, said in January it had seen profits fall by 43%, amounting to $60 million in the last quarter, purely due to price rises in raw materials, mainly steel but also textiles, plastics and other metals. “We expect to continue to see substantial headwinds from raw materials also in 2022,” Mikael Bratt, Autoliv’s CEO, said on a January call with analysts.
It said permanent magnet motors accounted for around 83% of all electric motors in EVs in 2021, but indicated some were switching to other technologies. BMW’s fifth-generation drive system uses a wound motor design with copper windings. “If material prices continue to be volatile, it would not be surprising to see more OEMs and tier ones adopt magnet-free designs in the near future,” IDTechX said in a report.