From Metal Miner,Some Analysts Predict a Coming Supply Chain...

From Metal Miner,

Some Analysts Predict a Coming Supply Chain Shortage

The world currently faces a possible shortage of raw materials to make batteries because of the rising demand for EVs, as metals like lithium, cobalt, and nickel will continue to remain vital materials in the manufacturing process. In fact, about eight kilograms (17 pounds) of lithium go into every battery. Moreover, lithium production will more than triple this decade, causing EV manufacturers to worry about a possible oncoming shortage of raw materials.

Another obstacle that automakers must overcome as they increase supplies is a lack of refinery capacity to purify raw lithium into battery material. Also, issues pertaining to tense U.S.-Chinese ties further continue to increase uncertainty. That said, other governments, including Indonesia, Chile, and Zimbabwe, want to maximize their return on lithium, cobalt, and nickel deposits. In this case, the idea is to require miners to invest in refining and processing before they can export.(emphasis is mine)

Meanwhile, costs for EV batteries remain susceptible to increases due to these possible raw materials shortages. According to a recent analysis from research firm E Source, battery cell prices will potentially increase 22% between 2023 and 2026, reaching a peak of $138 per kilowatt-hour.

Because of all of these factors, the possible shortage of raw materials for EV batteries is a significant challenge that automakers and governments must address and face head-on.