Mexican Media Brands
Cobalt Shortage Could Threaten EV Sales Plans
The auto industry’s plan to drastically boost its output of electrified cars could stumble over a shortage of cobalt needed for EV batteries, the Financial Times warns.
#economics #hybrid
Share
The auto industry’s plan to drastically boost its output of electrified cars could stumble over a shortage of cobalt needed for EV batteries, the Financial Times warns.
Cobalt prices have nearly doubled this year. Edinburgh-based energy consultancy Wood Mackenzie Ltd. predicts global demand for cobalt in EV batteries will quadruple by 2020 and grow elevenfold by 2025.
Carmakers have been scrambling with little luck to lock in multi-year supplies of the metal, 60% of which is mined in the politically volatile Democratic Republic of Congo. Last month Volkswagen AG offered a relatively low fixed price for at least five years’ of supply but got no takers.
Traders point out that a continued run-up in cobalt prices will erode demand and prompt battery producers to search for a substitute material. Analysts tell FT they expect that producers and carmakers eventually will work out some sort of flexible-price supply scheme.
RELATED CONTENT
-
On Global EV Sales, Lean and the Supply Chain & Dealing With Snow
The distribution of EVs and potential implications, why lean still matters even with supply chain issues, where there are the most industrial robots, a potential coming shortage that isn’t a microprocessor, mapping tech and obscured signs, and a look at the future
-
On The German Auto Industry
A look at several things that are going on in the German auto industry—from new vehicles to stamping to building electric vehicles.
-
On Lincoln-Shinola, Euro EV Sales, Engineered Carbon, and more
On a Lincoln-Shinola concept, Euro EV sales, engineered carbon for fuel cells, a thermal sensor for ADAS, battery analytics, and measuring vehicle performance in use with big data
