Industry Background
The rapid expansion of the electric vehicle (EV) market is fueled by a growing global demand for renewable energy and green transportation. However, this growth is underpinned by significant pressures on its key component—the battery supply chain.
Key Data
- Global EV sales are projected to reach 40 million by 2030
- Demand for critical raw materials like lithium, cobalt, and nickel will surge
- China currently controls over 70% of global battery production
Supply Chain Challenges
The main bottlenecks in the EV battery supply chain include insufficient supplies of raw materials (particularly lithium and cobalt), manufacturing capacity constraints, and technical barriers to recycling.
Analysis & Impact
As market demand grows, so do supply chain risks. Issues such as environmental concerns and labor practices in raw material extraction and refining cannot be ignored. Furthermore, geopolitical tensions can exacerbate resource competition.
