Study: Diversification of Electric Vehicle Batteries Needed to Avoid Supply Chain Woes

An increase in demand for electric vehicles may outpace what producers of current battery technology are able to accommodate, according to Green Car Reports.

McKinsey & Company has predicted that by 2030, EV sales will see a sixfold increase—something the supply chain will struggle to keep up with, in spite of anticipated advances in mining and sourcing efforts.

If nickel manganese cobalt continues as the dominant chemistry used for EV batteries, it will put a strain on nickel, with shortages expected to occur, said McKinsey. 

The firm has estimated EV sales to be 28 million in 2030. While battery suppliers for these vehicles currently comprise 80% of global lithium use, it would grow to 95% under such demand.

However, the study also noted that the implementation of alternative chemistries for batteries, such as lithium iron phosphate, may alter this outcome. Efforts by the E.U. and U.S. to increase domestic production could also provide additional materials, as well as efforts to recycle battery materials.