Manufacturers Are Struggling To Supply Electric Vehicles With Batteries

Manufacturers Are Struggling To Supply Electric Vehicles With Batteries

Demand for lithium in the form of lithium carbonate and lithium hydroxide - key ingredients in these batteries - are rising rapidly: up almost 20% in 2019.. , demand for the metal [$1 - $3 per oz.] is only expected to increase while supply would not shift substantially.. The global pandemic introduces additional uncertainties to the sustainability of existing supply chains.. The prices for lithium hydroxide rose. While most of the manufacturers have already restarted their production, the outbreak is estimated to set Chinese battery producers back by. With the looming economic downturn, many of the companies attempt to localize, or at least diversify, their supply chain for lithium.. With sales of EVs predicted to grow this decade and beyond, manufacturers will need to find a way to either ensure a continuous supply of cobalt and lithium or find viable alternatives.. Another supply chain strengthening process is the recycling of existing EV batteries to reduce the mining and processing of raw materials.. Department of Interior to locate a domestic supply of 35 critical materials, including lithium and cobalt.. With lithium-ion batteries becoming an essential part of modern life and a crucial step to decarbonizing the global economy, supply chain issues