Challenges in the battery raw materials supply chain: Achieving decarbonization from a mineral-extraction perspective

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 used to fully support vehicle electrification and intermittent energy storage. Nickel, lithium, cobalt and graphite reserves risk 100 percent depletion with significant consumption of known resources. Furthermore, more than 700 new critical mineral mines will need to be developed to meet the required production rates for decarbonization by 2050. Demand for critical minerals will outpace mine development timelines even as improvements are made to battery energy density and compositions. Governments and the private sector need to align themselves on decarbonization 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 incentivizing public transportation and biking infrastructure can be exploited to drastically reduce the mineral demand placed on the mining industry.