The transportation industry is undergoing a paradigm shift away from fossil fuels amid growing global pressures to reduce carbon emissions. The report assesses the market for EV batteries and essential metals such as lithium and cobalt and points out some of the opportunities and challenges facing the industry. It also illustrates how certain innovations on the backdrop of key challenges facing EVs, are needed to ensure EV adoption continues growing in the future.
This report comes in PPT.
The global EV industry is growing as sustainability pressures have earmarked a transition away from internal combustion engine vehicles. By 2040, 71 million new passenger cars are expected to be registered, equivalent to 70% of all new registrations. This will boost demand for metals and minerals such as lithium, cobalt and nickel critical for EV batteries.
Geopolitical tensions between the US and China are pushing countries to restructure the EV battery supply chain. This is being manifested through targeted government incentive programmes to ensure the raw materials used in the production of the battery are sourced nationally or from partner countries.
Despite the anticipated rise in demand for metals, shortages of materials are unlikely as global reserves of metals far exceed the projected demand. However, on the production side, many challenges remain as current metal extraction levels are not sufficient to meet the anticipated demand growth.
Production and supply or lithium and nickel need to be improved by 2030 to avoid price shocks of metals. Even though current supply levels of lithium and nickel would meet the projected demand from the EV sector, increased consumption would leave fewer resources for other sectors and lead to higher prices.
With EV battery production expected to mount, battery manufacturers and automotive OEMs will need to focus on four aspects to build future success - deepen focus on the upstream supply chain, reduce EV battery costs, improve battery energy density and expand EV battery recycling intensities.
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