Such a projection, the consultancy says, means that the industry is “likely to confront persistent long-term challenges” in keeping with demand.
In particular, its reports highlights that automotive OEMs are giving more attention to reducing Scope 3 emissions from material usage, which contribute a large portion of what batteries emit. As a result, battery materials sourcing has become ever more important for battery producers.
Based on the latest estimates, McKinsey’s analysis projects that demand will outpace base-case supply for certain materials, requiring additional investment and leading to fear of shortages and price volatility, among other challenges.
Supply shortages looming
Based on current market observations, battery manufacturers can expect challenges securing supply of several essential battery raw materials by 2030, McKinsey’s report finds.
Battery makers use more…
