Electrical steel supply and demand could impact EV prices later this decade

Why it matters: Much of the current conversation surrounding electric vehicle manufacturing has focused on sourcing lithium for batteries. However, another critical component for EVs could come in short supply in the next few years—electrical steel. Manufacturers in the US are trying to ramp up production to compete in a foreign-dominated industry.

Analysts estimate that global supplies of electrical steel—needed for electric vehicle motors—could struggle to meet demand before the end of this decade. New companies are entering the market to avoid a crunch that could increase EV prices during a time when we need them to be more affordable.