Electrification push will have enormous impacts on critical metals supply chain

Electrification push will have enormous impacts on critical metals supply chain
by Blaine Friedlander, Cornell Chronicle
Ithaca NY (SPX) Apr 12, 2023

The demand for battery-grade lithium, nickel, cobalt, manganese and platinum will climb steeply as vehicle electrification speeds up and nations work to reduce greenhouse gas emissions through mid-century. This surge in demand will also create a variety of economic and supply-chain problems, according to new Cornell University research published in Nature Communications.

In the new paper, senior author Fengqi You, professor in energy systems engineering, and his colleagues examined 48 countries that are committed to playing a strong role in electrifying transportation, including the U.S., China and India.

Under a scenario where 40% of vehicles are electric by 2050, the need for lithium globally will increase 2,909% from the 2020 level. If 100% of vehicles are electric by 2050, the need for lithium more than doubles, to 7,513%.

From the years 2010 to 2050, in a scenario where all vehicles are electric, the annual demand for lithium would increase globally from 747 metric tons to 2.2 million metric tons.

By mid-century, for example, the demand for nickel eclipses other critical metals, as the global need ranges from 2 million metric tons, where 40% of vehicles are electric, to 5.2 million metric tons where all vehicles are electric.

The annual demand for cobalt (ranging from 0.3 to 0.8 million metric tons) and manganese (ranging from 0.2 to 0.5 million metric tons) will rise by the same order of magnitude in 2050, according to the paper.

Currently, critical metals and minerals are centralized in politically unstable Chile, Congo, Indonesia, Brazil, Argentina and South Africa, according to the World Bank.

"The unstable supplies of critical metals and minerals can exacerbate supply risks under surging demand," You said.

In the paper, the researchers urge caution on the electrification of heavy-duty vehicles, which require more critical metals than other vehicles. Although they account for only between 4% and 11% of the total road fleet in some countries, battery-related critical metals used in heavy-duty electric vehicles will account for 62% of the critical metal demand in the decades ahead.

Research Report:Trade-off between critical metal requirement and transportation decarbonization in automotive electrification