Automakers have made splashy multibillion-dollar investments towards electrification, however earlier than they will fulfill any of their lofty aspirations, the business has a crucial subject to resolve: growing a plan to supply uncooked supplies for electrical automobile batteries. Automakers ought to lead the cost.
EV market share may surge to half of U.S. gross sales in lower than a decade, if the Biden administration reaches its objective, up from lower than 3 % of U.S. light-vehicle gross sales at this time. The remainder of the worldwide business — particularly China and Europe — is additional alongside and transferring quicker to switch inside combustion with electrical energy.
Automakers and battery producers are experimenting with new battery chemistries to extend effectivity and vary and scale back price. However the demand for key supplies — important metals — to assemble the battery cells will nonetheless be large and rising quickly. Sourcing them safely, responsibly and at an inexpensive price requires establishing a brand new provide chain for EV batteries.
Sourcing metals reminiscent of lithium, cobalt, nickel, graphite and manganese for batteries is an issue the business wants to resolve rapidly to keep away from part shortages just like the semiconductor and container crises it has confronted this yr.