Here’s the bad news. Just as it begins to gain momentum, the electrification of transportation could begin stalling as early as mid-decade.
Starting around 2025, demand for key battery metals could start exceeding supply, adding costs to EV battery manufacturing, and putting the brakes on EV adoption, according to a new detailed analysis by S&P Global, The Future of Copper.
In fact, car manufacturers are already facing supply chain constraints for certain key metals, and are already resorting to substitution materials.
Ford Motor Co. (NYSE:F) announced this week it will switch to lower performance batteries for some of its EV vehicles, a move aimed at meeting production goals while addressing nickel supply issues. For some standard EV models, Ford will use lithium-iron-sulphate batteries, which don’t require nickel or cobalt.
Meanwhile, the International Energy Agency (IEA) warns a lithium shortage could start around…
