108 Wright’s Law Has Modeled The Decline In Battery Costs Accurately According to Wright’s Law, for every cumulative doubling in the number of kWh produced, battery costs will fall by 28%. Lithium iron phosphate (LFP) cells are taking share from nickel-rich cells, illustrating the difficulty of forecasting commodity prices as battery chemistries change over time. Battery Cost Decline Global LFP Cathode Chemistry * * Share Of Passenger EV Sales Nickel Cells Nickel Forecast LFP Cells LFP Forecast $10,000 45% ES L 40% IC VEH 35% $1,000 IC R 30% T EC 25% EL $100 $/kWh 20% 15% $10 10% 5% $1 0% 100,000 1,000,000 10,000,000 100,000,000 1,000,000,000 10,000,000,000 2019 2023 Cumulative kWh *Combination of modeled and historical data. Sources: ARK Investment Management LLC, 2024. This ARK analysis is based on a range of underlying data from external sources, including Bloomberg New Energy Finance 2023, which may be provided upon request. Forecasts are inherently limited and cannot be relied upon. For informational purposes only and should not be considered investment advice or a recommendation to buy, sell, or hold any particular security. Past performance is not indicative of future results.