The penetration of electric vehicles (EVs) in the United States market requires a strong domestic supply chain that encompasses critical metals and minerals. The Biden administration has previously allocated billions of dollars to finance new clean energy industries, and now it is doing the same for the production of electric vehicle batteries. The goal is for electric vehicles to make up half of all newly sold vehicles by 2030.
The United States lags far behind China in terms of electric vehicle sales. China dominates the market for the production of these vehicles, including batteries. Chinese manufacturers produce three-quarters of all lithium-ion batteries in the world and have the capacity to manufacture around 70% of cathodes and 85% of anodes – two key components of batteries. Additionally, China controls over half of the global processing capacity for lithium, cobalt, and graphite. The United States lacks a sufficient supply of lithium and other key ingredients.
According to the International Energy Agency (IEA), the production of one electric vehicle requires about six times the amount of metals and minerals than a conventionally fueled vehicle. Electric vehicles require significant amounts of copper, nickel, and graphite, and despite representing only a fraction of the total number of vehicles on the road, the demand for many key minerals and metals already exceeds availability.
The development of infrastructure and investments in the domestic supply chain are necessary for the United States to compete in the electric vehicle market. Financial support from the Biden administration for the production of EV batteries is an important step in this direction. However, to meet growing demand and achieve the intended goals, the US will need to focus on increasing the extraction of metals and minerals necessary for electric vehicle production.
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The source of the article is from the blog bitperfect.pe