LONDON -- Russia's invasion of Ukraine is ramping up the price of metals used in cars, from aluminum in the bodywork to palladium in catalytic converters to the high-grade nickel in electric-vehicle batteries, and drivers are likely to pay the cost.
While metals have not been the target of Western sanctions yet, some shippers and suppliers are already steering clear of Russian goods, putting more pressure on automakers already reeling from a chip shortage and higher energy prices.
"So what happens from here?" asked Carlos Tavares, CEO of Stellantis, when speaking to reporters last week. "First, what happens is that we have an escalation of cost that comes from raw materials and energy that is going to put more pressure on the business model," he said.
Aluminum CMAL3 and palladium XPD= both hit record highs on Monday while nickel CMNI3, which is also used to make stainless steel, surged to its highest level since 2007.