S&P Global Mobility issued a warning in research that the development of battery production for electric vehicles (EVs) could be hampered by a fragile supply chain weakened by geopolitical tensions, which would hinder EV adoption.
The initial equipment suppliers of battery-electric and hybrid cars will encounter significant challenges as they compete for raw resources, according to the auto industry facilitator, with yearly market demand for lithium-ion batteries estimated to be around 3.4 Terawatt hours (TWh) by 2030.
According to S&P Global Mobility, problems with the manufacturing of key battery metals are driving up the cost of components and automobiles, endangering the profitability of vendors and manufacturers.
“Elements such as lithium, nickel, and cobalt do not just magically appear and transform into EV batteries and other components”.Graham Evans, director of auto supply Chain & technology at S&P Global Mobility
A notable control point is a stage between the excavation of the component parts and the final assembly, he continued.
According to a study by Reuters published this past month, the major automakers in the world want to invest roughly $1.2 trillion until 2030 in the development and manufacture of millions of electric vehicles, as well as batteries and natural resources.
“Achieving its volume goals will require a steep growth curve for a burgeoning industry”.Report
The first and most nickel will be demanded by Tesla Inc (TSLA.O), the market leader in electric vehicles, in 2030, at around 139,000 metric tons.
Information from Reuters