Goldman Sachs is warning that electric vehicle makers will face rising battery costs, thanks to increased popularity.

Automakers around the world are committing resources to the transition to electric vehicles. Governments are lending their support, committing to climate change and putting pressure on automakers to speed up the transition.

According to CNBC, however, Goldman Sachs is warning the increased demand for EVs will lead to significantly increased battery cost. In fact, Goldman’s analyst predicts a rise of 18%. Given that the batteries account for 20% to 40% of a vehicle’s cost, an 18% rise in battery cost could significantly impact the EV market.

“Prices for the three main natural resources have been rising since the start of 2021,” said Goldman’s report. “We believe that in order to promote sustainable EV industries, some countries may consider implementing policies to increase national stockpiles.”