Eyeing The EV Mineral Crisis - Have You Heard Of The Intense Mineral Needs Of Electric Vehicles?

The Mineral Requirement For EVs. Have you ever thought about the number of minerals necessary for electric vehicles? Believe it or not, they often require up to six times more than conventional cars! This increase in mineral demand is creating a considerable strain on key battery metals such as lithium, cobalt, and nickel. In fact, predictions from the International Energy Agency (IEA) suggest that their usage will soar from 10%-20% to 80% by 2030. With global commitments to move toward all-electric vehicles by 2035 and 2040, Visual Capitalist Tessa Di Grandi and Zack Aboulazm consider whether the world has an adequate supply of minerals to meet these ambitious goals.

When it comes to having the minerals we need, there are several components that must be taken into consideration. Geopolitics, the quality of materials, production times within the mining sector, and environmental conditions all play a role. Recycling has been identified as a potential resource for mitigating mineral shortages; however, it is not expected to make enough of an impact until around 2030.

EV Supply Chain Disruption And A Possible Solution

These days, a handful of countries are responsible for the global supply of materials necessary for electric vehicle batteries. This limited availability has become a problem for EV distribution networks. China is home to more than half of lithium, cobalt, and graphite processing and refining facilities in addition to three-quarters of all lithium-ion battery production capacity. Despite the fact that more than one-quarter of electric vehicles (EVs) are assembled in European countries, very little of the supply chain is actually located here. Of the cobalt processing share, only 20% can be attributed to Europeans. An alternative story is seen with both Korea and Japan, who control a sizable part of the downstream supply chain once raw materials have already been processed. Korea holds 15% of worldwide cathode material production capacity while Japan accounts for 14% of cathode and 11% anode material supplies. In comparison, America has a much smaller impact on EV output at 10%, along with 7% battery production capacity.

In order to alleviate any impediments related to resource requirements, KGP Auto's new report puts forward a plan that matches material supply with more diverse fuel energy sources.

Palladium and other Platinum Group Metals are major players in the automotive sphere as they contribute towards manufacturing vehicles with low emissions. Simultaneously, these cars pave the way towards environmentally friendly fuels such as hydrogen which can bridge the gap between current emission levels and net-zero targets for EVs.