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The rising nickel prices, owing to the Russian invasion of Ukraine, have thrown a spanner in Elon Musk and other automakers' dream of introducing affordable electric cars soon.

Nickel prices surged as much as 111 per centAon Tuesday during the Asian trade to breach $100,000 per tonne.

Reports said that the rising raw materials costs have hampered Musk and other automakers' plans to introduce more affordable electric vehicles (EVs).

Nickel (Ni) has long been widely used in batteries, most commonly in nickel cadmium (NiCd) and in the longer-lasting nickel metal hydride (NiMH) rechargeable batteries, which came to the fore in the 1980s.

According to nickelinstitute.org, the mid-1990s saw the first significant use of NiMH batteries in vehicles in the Toyota Prius.

The major advantage of using nickel in batteries is that it helps deliver higher energy density and greater storage capacity at a lower cost.

"Li-ion batteries were incorporated into the next generation of electric cars, as their superior power density became critical for moving vehicles over long distances. Although electric vehicles (EVs) currently account for a relatively small proportion of global automobile stock, their market share is increasing and is forecast to continue to grow rapidly in the coming years," said the institute.

Not just Tesla, several traditional top automakers are investing heavily in EVs.

In its bid to catch up with Tesla, Ford Motor Company just announced to increase its EV investment to $50 billion till 2026, up from the previous $30 billion investment announcement by 2025. US-based automaker Jeep, owned by Stellantis, has revealed the first images of its upcoming electric SUV and confirmed that it will launch in 2023.

As electric cars become the flavour of the season, Sony and Honda last week announced a strategic alliance to form a new company that aims to create the next era of mobility and mobility services. The sales of the first EV model are expected to start in 2025.

Nearly 6.5 million electric vehicles (EVs) -- including fully electric and plug-in hybrid passenger cars -- were sold worldwide in 2021, up 109 per cent from 2020, with Tesla leading the global EV marketa with 14 per cent share.

The total global car market grew just 4 per cent in 2021 as it continued to struggle with Covid-19 restrictions and chip shortages, while EV sales represented 9 per cent of all passenger car sales last year, according to market research firm Canalys.

The Tesla Model 3 was the best-selling electric car in Europe in 2021, but Volkswagen Group was the leading manufacturer of EVs, with several models from Audi, Skoda and VW selling well.