- On top of the looming chip shortage, inadequate raw materials for EV batteries are making those vehicles more expensive, in turn threatening makers’ profit margins
- Analysts reckon that the supply chain may not be able to keep up with the current EV market demand
- Europe however is not slowing down when it comes to localizing its battery manufacturing capacities
In Europe, battery investments are booming thanks largely to rapidly growing electric vehicle (EV) sales over the past year. There are even numerous gigafactories planned in the pipeline throughout Europe, in efforts to push for EU-domestic production of EV batteries to reduce dependence from elsewhere. But just as the scene is really heating up on the continent, another challenge is taking shape.
Major carmakers including Volkswagen, Daimler and Stellantis have been struggling to secure their supplies of battery cells. And these days, the vehicle giants are finding it even tougher to get their hands on enough coveted minerals needed for the production of EV batteries such as lithium, nickel, manganese and cobalt. This is placing heavier constraints on Europe’s battery sector and the collective efforts to keep pace with demand, according to a report by Reuters.
To put things into perspective, global sales of EVs are forecast to grow more than 12-fold to 31.1 million by 2030, up from just 2.5 million vehicles in 2020, according to Deloitte. That also simply means that more factories for EV batteries are needed to...
Read Full Story: https://techhq.com/2021/11/euro-carmakers-running-on-empty-as-ev-batteries-raw-materials-run-out/
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