Featured in Material change – 03-2024

What’s next for battery materials?

Little more than a year ago, the rising cost of raw materials threatened the future of mass-market electric vehicle (EV) adoption, writes Max Reid, principal analyst at Wood Mackenzie. EV and battery producers couldn’t swallow the cost increases because of the industry’s razor thin or negative margins. Higher prices for consumers would crush hopes of reaching ambitious EV adoption targets set by the European Union – let alone global net zero ambition.
By
pv magazine
While some EV manufacturers, such as BYD, have performed well, others have struggled to maintain profitability at an affordable price point. | Photo: pv magazine/Eckhart K. Gouras

 There is no doubt the surge in EV sales contributed to skyrocketing prices. Soaring EV popularity in the second half of 2021 created intense competition for raw material feedstock. The supply sector finds it difficult to react to sudden increases in demand. Expansion of mines and refineries can take months or even years. Moreover, pivotal …

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