Challenges in the Battery Raw Materials Supply Chain: Achieving Decarbonisation from a Mineral Extraction Perspective

Abstract

Understanding constraints within the raw battery material supply chain is essential for making informed decisions that will ensure the battery industry’s future success. The primary limiting factor for long-term mass production of batteries is mineral extraction constraints. These constraints are highlighted in a first-fill analysis which showed significant risks if lithium-ion batteries are utilised to fully support vehicle electrification and intermittent energy storage. Nickel, lithium, cobalt, and graphite reserves risk 100% depletion with significant consumption of known resources. Furthermore, over 700 new critical mineral mines will need to be developed to meet the required production rates for decarbonisation by 2050. Demand for critical minerals will out-pace mine development timelines even as improvements are made to battery energy density and compositions. Governments and the private sector need to align themselves on decarbonisation goals to establish cooperative agreements on the critical mineral supply chain by reducing the barriers to entry and increasing exploration efforts. Additional measures must also be taken to reduce the demand for critical minerals. Policy such as incentivising public transportation and biking infrastructure can be exploited to drastically reduce the mineral demand placed on the mining industry.