Container Shortages and Electric Vehicle Acquisition Hindrances: The Unseen Hurdles in the Rapid Growth of the EV Industry
The ING report, released recently, serves as a call to action for stakeholders across the globe. It underscores the urgency of collaborating and investing in necessary infrastructure to foster a cleaner and more sustainable transportation sector, particularly as the demand for electric vehicles (EVs) continues to surge.
In 2022, EVs accounted for 2.2% of the total car fleet, marking a significant increase from the previous years. The global sales of electric vehicles grew by 14% in 2022, up from 9% in 2021 and under 5% in 2020. By 2023, nearly one in five new cars sold worldwide is projected to be electric.
However, this growth comes with its challenges. The demand for critical raw materials like lithium, cobalt, and nickel for EV production has surged, with 60% of lithium, 30% of cobalt, and 10% of nickel demand now attributed to EV batteries - a significant increase from just five years ago.
Squeezed supply chains and looming shortages of key metals pose a risk to the growth of the electric vehicle market. Potential shortages of essential components for EV batteries may occur due to supply chain struggles. To meet the demands of the green transition and reach projected growth targets, production of these critical raw materials must increase significantly.
The report emphasizes the need for diversification and increased investment in battery manufacturing and raw material production. Key countries important for increasing production of these critical raw materials for electric vehicle manufacturing are the Democratic Republic of Congo (for cobalt), Chile and Australia (for lithium), China, and the USA, which is also boosting domestic mining and processing of lithium, cobalt, nickel, and manganese to reduce import dependency and meet green transition goals.
Efforts to strengthen supply chains and boost production could lead to a more resilient and sustainable energy future. The potential consequences of supply chain disruptions for the energy transition and broader global economy are significant. The report highlights the opportunity for sustainable growth and investment in securing critical materials for EV production.
The automotive lithium-ion battery demand jumped by 65% to 550 GWh in 2022, primarily driven by EV sales growth. Addressing these supply chain challenges is crucial to achieving carbon reduction goals and ensuring the continued growth of the electric vehicle market. As the world races toward a net zero future, addressing gaps in EV supply chains will be crucial to ensuring the continued growth and success of the electric vehicle market.
Governments, industries, and investors are recognizing the urgency of securing critical materials for EV production. Collaboration among stakeholders will be key to paving the way for a cleaner and more sustainable transportation sector. The ING report underscores the need for such collaboration and investment to ensure a brighter, greener future for all.
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