The price of key battery metals used in electric vehicle production is expected to fall in coming years

The price of battery metals used in the production of electric vehicles is expected to drop in the coming years, according to Goldman Sachs.

According to analysts, the cost of nickel,cobalt, andlithium will decline in the next two years due to over-investment in green energy ventures. The abundant supply of metals will be affected by market corrections.

As the automotive industry expands its efforts into sustainable vehicles and away from gas- fueled cars, investors continue to flock to the EV battery market. Concerns over shortages of the materials in recent months, particularly amid the pandemic and Russia's invasion of Ukraine, further amplified investments for the metals.

Analysts said thatfundamental mispricing has generated an outsized supply response well ahead of the demand trend, as Goldman Sachs said the EV battery market will continue to thrive. The EV battery market is expected to reach $360 billion by the year 2030.

Goldman analysts said in a note on Sunday that they see the battery metals bull market as over.