Electric mobility continues to grow rapidly; this sector is seeing some phenomenon growth at an incredible pace. There is an increased demand for the minerals needed to produce lithium-ion battery cells, including lithium, nickel, and copper.
Mineral shortages could restrict the rapid growth of the electric vehicle
According to Germany’s Karlsruhe Institute of Technology (KIT), supplies of battery metals are likely to be limited as soon as 2050.
Tesla Inc has recently warned of the global shortages of key electric-vehicle battery minerals in near future due to underinvestment in the mining sector. As a consequence of limited supply, the prices for key elements in the making of rechargeable batteries could increase exponentially.
Industry experts think that the auto industry need to invest directly in battery metals mines in order to secure supply over the next few years.
At present, two-thirds of the world’s lithium-ion batteries are currently sourced from China. Compare to this the U.S. produces only 5%.
China also controls most of the world’s lithium processing facilities. To compete, France and Germany are planning a $1.9 billion battery cell consortium.