European Transport and Environment (T&E) said that the global EV industry has enough lithium and nickel supplies to produce 14 million electric vehicles (EVs) in 2023, even without the Russian supplies.
“The foreseen production capacity is 55% higher than the current market projections,” T&E said. It has also made the calling on European governments to scale up their efforts to secure critical elements to secure the future of green energy security.
According to T&E, there will be enough materials to produce 21 million battery-electric vehicles (BEVs) in 2025 even if supply is tightened, reaching around 50% more than the current estimates.
However, the optimistic figures excluding Russian supply do not guarantee high competitiveness for Europe in the coming years. Noting that, China and the US are also ramping up their EV production and investments and have the same ambition to secure supplies by increasing domestic production.
To recap, the Biden administration has recently announced a $3 billion investment in electrification, while China grabbed Europe’s seat in global EV sales in 2021, reaching 3.31 million passenger cars.
Pressure on prices won’t last
European policymakers are advised to strengthen diplomacy with resource-rich countries, including Australia, Indonesia, Canada and Chile while launching discussions with mining companies.
The pressure on prices caused by supply chain disruptions and the war in Ukraine is not to last, according to T&E.
“Expansion of mining and recycling companies as a response to increasing pressure will stabilise the prices in the coming years,” T&E is quoted as saying.
