Only 16% of base metals used in battery production between now and 2030. This is the share that car manufacturers operating in the European market have managed to get so far, according to an analysis by the environmental organization Transport&Environment (T&E). A situation that puts the EU automotive industry at a clear disadvantage compared to US Tesla and Chinese BYD.
Looking at the supply contracts publicly disclosed by the companies themselves, it appears that these two companies are already well on their way to securing the cobalt, lithium and nickel supplies needed to meet their 2030 sales targets. In Europe, Volkswagen and Stellantis are two groups. ahead in sourcing, but overall the EU industry is lagging behind.
T&E’s analysis takes into account not only raw materials, but also the evolution of battery cell production and transparency in the supply chain. Based on these three factors, Tesla achieved the highest index, but critical issues regarding supply transparency remain. Germany’s Volkswagen follows, followed by BYD. Another US giant, Ford, ranks fourth, followed by French Stellantis and Renault.
Only those six companies have long-term contracts for each of the three base metals (cobalt, lithium and nickel) or have plans to change battery chemistry to end their reliance on one of the metals, according to the research. Mercedes has only one publicly disclosed contract for a key mineral, while BMW, which opposes the EU’s phase-out of internal combustion engines, has not disclosed enough information about how it plans to ensure the safety of nickel, cobalt or cathode materials.
T&E’s Julia Poliscanova said: “There is a clear disconnect between the goals of electric vehicle manufacturers and their critical mining strategies. Tesla and BYD are well ahead of most European operators, who are only now waking up to the challenge of securing battery metals.” says. “This report should raise the alarm,” she adds. According to Poliscanova, simply improving the supply of raw materials is not enough to compensate for delays: “It will be important to support local refineries and battery component factories for their resilience,” she explains.
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Source: Today IT
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
