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Battery raw materials not expected to become scarce just yet

Raw materials for batteries are in demand, since they are used both in the automotive industry and for energy system transformation. If a study by Wood Mackenzie is to be believed, however, we should not expect to see any shortages in the next few years.

01 Sep. 2019
Photo: Wood Mackenzie

Although the researchers and consultants assume that demand for the raw materials cobalt, lithium, nickel, graphite, and manganese, which are important for battery production, will continue to grow strongly, they believe that in many cases, this will be countered by an increase in production. Around 2025, however, there could well be supply crises, and consequently increasing pressure on the supply chains for battery raw materials. It is therefore necessary to start planning for the future today, because the development of new sources costs is likely to be time-consuming for producers and require high investment.

Munich-based BMW decided to not take any chances back in 2018: the company purchases materials such as lithium and cobalt itself and has agreed guarantees for them with its suppliers in Asia. The contracts run for ten years.