Introduction
The growing concern for the environment has led to the rise in demand for electric vehicles (EVs). These vehicles are powered by rechargeable electric batteries that require specific materials and metals. As the demand for electric vehicles continues to grow, it affects the market for rare metals and materials. This article delves into the impact of electric vehicles on the demand for rare metals and materials.
The Key Metals And Materials Used In EVs
Electric vehicles use numerous metals and materials in their batteries and construction. The most crucial of these materials are:
- Lithium
- Cobalt
- Nickel
- Graphite
- Rare earth metals
- Copper
- Aluminium
Lithium, cobalt and nickel are the fundamental materials in the construction of rechargeable batteries while graphite is mainly used in the anode of batteries. Rare earth metals such as neodymium and dysprosium are used in the construction of electric motor magnets while copper and aluminium are used in the motor windings and construction.
Growing Demand for Electric Vehicles
The global demand for electric vehicles has been on the rise over the last decade. In 2020, more than 3 million electric vehicles were sold worldwide, which is a 41% increase from 2019. This growth is expected to continue, and by 2030, the global electric vehicle stock is projected to reach 125 million units.
The increase in electric vehicle demand means that there will be a continuous demand for the essential metals and materials used in their production. In recent years, the demand for lithium, cobalt and nickel has increased drastically, and this trend is expected to continue as electric vehicle manufacturing becomes mainstream.
Impact on Lithium Demand
Lithium is a vital component in the construction of rechargeable batteries. The demand for lithium has increased by over 400% in the past decade, and it is estimated that global lithium consumption will triple by 2025. The rise in lithium demand is further fueled by the increase in renewable energy usage, as lithium is also used in energy storage.
Innovations and renewable energy policies in various countries also have an impact on the demand for lithium. Electric car manufacturers such as Tesla, General Motors and Volkswagen are heavily investing in battery production lines to meet the growing demand for electric vehicles. This investment translates to a rise in the demand for lithium and other metals used in battery production.
Impact on Cobalt Demand
Cobalt is used in the construction of lithium-ion batteries and is a crucial component that improves battery performance. The increase in electric vehicle production has resulted in a surge in cobalt demand, with the global cobalt demand estimated to reach 122,000 metric tons by 2025. About 60% of the world’s cobalt comes from the Democratic Republic of Congo, which is a source of political unrest and human rights violations.
Several efforts are being made to reduce cobalt usage in lithium-ion batteries due to the ethical and environmental concerns surrounding its mining. Researchers are working on developing cobalt-free batteries, and electric vehicle manufacturers are exploring alternatives such as lithium-ion phosphate or manganese oxide-based batteries.
Impact on Nickel Demand
Nickel is another critical component in the construction of rechargeable batteries. The demand for nickel has been on a steady rise, as it is used in the production of high-performance batteries. The demand for nickel in batteries is expected to increase by over 500% by 2030 as electric vehicle production continues to grow.
Nickel is also used in stainless steel production, and the rise in demand for electric vehicles could change the global nickel market. Electric vehicle manufacturers are likely to favor nickel supply chains that have lower energy and environmental footprints.
Impact on Rare Earth Metals
Rare earth metals such as neodymium and dysprosium are used in the construction of electric motor magnets. The growth in electric vehicles has resulted in a surge in the demand for rare earth metals. In 2019, the global rare earth metals market was valued at $9.8 billion, and this figure is expected to rise.
Efforts are being made to reduce the reliance on rare earth metals in the production of electric vehicles. Alternatives such as iron, cobalt and manganese alloys are being explored as substitutes for rare earth metals.
Conclusion
Electric vehicle production and usage have a significant impact on the demand for rare metals and materials. The growing popularity of electric vehicles means that there will be a demand for these materials over an extended period. Efforts are being made to reduce the reliance on these materials and to explore alternative materials that are environmentally friendly and ethical. It is important to balance the benefits of electric vehicles and the use of rare metals and materials to ensure a sustainable future.