Metal Commodity Prices Surge +250%: A Major Hurdle for Electric Vehicles :: Right & Free

2 months ago

Metal Commodity Prices Surge +250%: A Major Hurdle for Electric Vehicles

# russia

Electric vehicle prices will rise due to nickel commodity surge.

Nearly overnight, nickel prices skyrocketed upward by 250% — Increasing the cost from less than $30,000 per ton last week, which was the highest level since 2008, to over $100,000 per ton today.

Prices escalated to a record high in one of the most extreme price spikes the London Metal Exchange has ever seen. The stunning surge came as a result of a turbulent week across energy and commodities markets, caused by increasing fears of a major supply disruption.

What caused the sudden spike?

In short, Vladimir Putin.

Russia produces 17% of the world’s top-grade nickel supply. Putin’s invasion of Ukraine led to general fears of commodity shortages. Add to that the recent financial sanctions placed on Russia, which created a selling frenzy accelerating nickel prices almost instantly. 

What does this mean for consumers?

As gas continues to reach new unimaginably high prices, there has never been a greater push for consumers to shift to electric vehicles.

Electric vehicles like Tesla sedans use around 100 pounds of nickel in each battery. This recent commodities spike has caused the price to increase approximately $1,500 to $2,000 per vehicle, and could continue to rise. 

After returning from his 18-month “maternity” leave, U.S. Secretary of Transportation Pete Buttigieg suggested American’s simply go out and buy new electric vehicles, which average in price around $55,000 and rising. 

Buttigieg’s suggestion came as a massive slap in the face to average American consumers, 64% of whom now live paycheck to paycheck due to inflation, and could never imagine being able to afford such a luxury. 

The average American household is on track to spend an additional $2,000 annually on gas, and an extra $1,000 or more on groceries. Purchasing a $55,000 vehicle to offset the cost increase is an investment most are unable to make, and would put many American families deeper into debt or bankruptcy.

What should American people who can’t afford new EVs do? 

Transportation Secretary Buttigieg suggests taking the bus. Thanks for the great tip, Pete.

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Nickel supplies in particular were already tight prior to this massive spike, as it is one key ingredient in the “electric vehicle revolution” being pushed by “Green New Deal” type climate activists in the Democrat party and their financial donors who are greasing politicians' pockets to force the market to change in their favor. 

Russia supplies the world with 17% of our nickel needs, primarily for stainless steel products and electric vehicle batteries. Russia also accounts for roughly 6% of global aluminum production, which is heavily used in the automotive industry and many consumer products as well. 

The Biden administration has been using executive orders and increasing fuel prices to force the United States away from the oil industry (which gives our nation strength and independence), in order to convince average Americans to buy electric vehicles. 

The only problem is, average American’s can’t afford these electric vehicles which average $55,000 in cost, and increased nearly $2,000 overnight due to nickel commodity price spikes alone. 

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Even if every American bought an electric vehicle today, these vehicles would be powered mainly by our fossil-fuel dependent energy grid, which would instantly collapse due to the increased output, leaving us all in the dark and stranded, unable to use the brand new vehicles. 

California and other states frequently experience brown-outs or black-outs on their power grids as it is, so the added burden to those systems would be a major catastrophe like we have never witnessed before in history.

If you were on a paycheck-to-paycheck budget like 64% of Americans and desperately needed a vehicle — would you take Secretary Pete’s suggestion and buy a new $55,000 electric vehicle which only lasts about 10 years? Or would something closer to a 35 mile-per-gallon used Volkswagen for three-grand make more sense? 

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While the overall goal of reducing pollution in the environment is noble, the activists who promote it are unable to comprehend the larger picture and offer no logical plans. 

If America were to listen to the demands of uninformed, lack-witted politicians like Alexandria Ocasio-Cortez and her “Green New Deal” associates, our entire country would implode before you could snap your fingers.

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When the technology improves to the point where city power-grids and electric vehicles can be affordable, efficient, and reliable, then these environmentally friendly technologies will naturally integrate into our society, thanks to the driving forces of capitalism. 

As technology improves, energy and automotive companies will be able to generate profits while lowering consumer costs, allowing us to afford their services and products, and those companies can then continue to operate in a free-market without government subsidies — an Economics 101 lesson that “Green Mafia” socialists like AOC never learned. 

Forcing a “Green Revolution” on America before the technology is absolutely ready will result in utter disaster, crippling our country’s future for generations to come. 

Joe Biden and his cronies in Washington are doing everything they can to fight free-market capitalism in order to jam their unworkable plan into our lives. They are intentionally making life difficult for average people so we succumb to their insane agendas.

Either way, let’s hope the Biden administration either shapes up, or ships out before it’s too late — Otherwise you may want to buy a new pair of walking shoes very soon. 


 


Last updated: March 10th, 2022 at 15:03 pm