Concerns in the automotive industry due to lack of raw materials for battery production

THE lack of raw materials and in particular of the base metals of batteries raises serious concerns, not only for the spread and expansion of electric drive, but also for the continuous increase of their prices, which has as a consequence the increase of the price of cars.

An International Energy Agency (IEA) report says sales of electric cars may have skyrocketed last year, with the trend continuing to rise this year, but also raising concerns about the future availability of raw materials such as lithium. . With 6.6 million electric car sales worldwide in 2021 and over just two million sales in the first quarter of this year alone, the data is changing and things are getting harder for raw material adequacy. Many car manufacturers are already making deals or even acquisitions of companies that deal with raw materials in order to give a stability and impetus to their sales policy. Others are involved in recycling, so that on the one hand they can give used batteries a second life and on the other hand they can be disassembled to get the precious metals from them.

The precious minerals are mined mainly in countries such as Australia, Chile or the Democratic Republic of the Congo. However, China produces three-quarters of lithium-ion batteries and controls more than half of the processing and refining capacity of lithium, cobalt and graphite. According to research by the International Energy Agency (IEA), lithium needs will increase sixfold by 2030, reaching 500 kilotons, requiring the opening of 50 new mines.

Europe, on the other hand, produces a quarter of electric cars, but has little control over raw materials. This development puts her in a difficult position, as a result of which she can not react to the issue of price increases. THE price of lithiumwhich is a basic raw material for batteries, has shown increase up to 500% in the last period of time.

According to the latest estimates and analyzes, the effects of the pandemic and the war have created a chain reaction that has resulted in an increase of over 1,000 euros in the prices of electric and conventional cars.

Lithium is extremely difficult to extract and process, and these processes are costly to the environment. All this happens when manufacturers are eager to get prices down of electrical at the level of conventional models. But they face a number of problems related to raw materials and battery production. And all this at a time when it has been decided that the production of thermal engines will stop very soon.