Auto DRAM Prices Soar, Hitting Tesla and Rivian Hardest

Fueled by surging AI demand and constrained supply, the DRAM market has entered a "super cycle," driving sharp price increases for automotive memory. Although automakers are a strategic priority for memory suppliers and face low risk of supply disruption, "price hikes to secure supply" have become the norm. S&P Global forecasts that from 2026 to 2027, the automotive DRAM market will shift to a "highest bidder wins" scenario, as many vehicle models still rely on DDR4/LPDDR4 chips—which are being phased out—triggering panic buying among OEMs and Tier 1 suppliers and worsening short-term shortages. Barclays notes that current spot price increases have already far exceeded earlier estimates of 30%–100%. Electric vehicles (EVs) with high memory requirements are the hardest hit, with Tesla and Rivian facing the highest cost risks. For example, DRAM could account for up to 1% of the total bill-of-materials (BOM) cost for a Model 3 or Model Y. In extreme cases, the DRAM cost per premium EV could surge from $200 to as high as $1,200 (approximately RMB 8,358).