5 Ways to Address a Battery Minerals Shortage
The scarcity of battery minerals is brought about by the increase in demand for electric cars (EVs), clean energy technology, and other renewable energy storage.
As companies aim to become NET Positive, a scarcity of battery minerals is brought about by the increase in demand for electric cars (EVs), clean energy technology, and other renewable energy storage. Cobalt, lithium, and nickel are a few of these minerals, and they are crucial elements of the batteries that power electric vehicles and other clean energy technologies.
The minerals are in short supply internationally, and there is concern that this shortfall could disrupt the supply chain sector, resulting in geopolitical unrest and higher pricing for various goods.
Since raw materials are the main determinant of cost for batteries, the battery mineral shortage poses greater risks for the automotive industry. Automakers must invest in those materials if they want to maintain margin control and competitiveness. However, due to a lack of mining/acquisitions expertise, it is challenging for automakers to buy the metals directly.
Five options for resolving battery minerals shortages:
Investing in deep sea mining as alternative sources of battery materials, but this has its own environmental challenges.
Creating new battery technologies that use less of these materials or substitute abundant minerals in their place.
Car manufacturing companies to increase staff numbers and staff offices with experts in metals sourcing and recycling.
The global supply chain requires more collaboration and coordination between nations and businesses. This will enhance transparency and traceability while encouraging ethical mining.
Recycling batteries. Recycled lithium battery cells are a good source of nickel, lithium, and cobalt.
For instance, Volkswagen is "sounding out the market" and negotiating with other prospective partners about different raw materials. This requires 21st century leadership skills. A key technique for coping with a rise in raw material costs is price hedging for products. Since 2018, almost $265.5 billion has been spent on the production of electric vehicles. However, only $40 billion, according to Battery Materials Review, were spent on raw materials.
The shortage of battery minerals presents a significant challenge for the clean energy sector, but it also offers an opportunity for innovation and collaboration to create a more regenerative economics.