E-mobility in lack of equipment
There is a shortage of lithium and charging stations
May 13, 2022, 7:19 p.m.
The massive increase in electric vehicles in 2021 makes analysts sit back and take notice. They warn that the rapid development may soon be slowed by lithium shortages and charging stations. The study warns that industry and policy must be taken into account here.
Global e-car sales doubled last year and accounted for eight percent of the total car market. A significant increase is also expected for the next few years. However, gaps in the supply of important raw materials, especially lithium, and insufficient infrastructure investment could slow this growth and, among other things, jeopardize the EU’s climate target. At least that’s what a new study by the Allianz Trading Company called “Turbo’s Electromobility Ignites – Imminent Lithium Supply Difference” suggests. According to analysts, greater investment in infrastructure and a stronger commitment by the industry to the supply of raw materials and production capacity for batteries should be made.
By 2021, about 6.8 million new electric vehicles will be on the road worldwide. China was the driver of the electric boom. In December 2021 alone, New Energy Vehicles (NEVs) sold in China accounted for 21 percent of all global automobile sales. However, the Chinese state is currently in the process of reducing financial support measures, which should also slow the increase in NEV sales.
For Europe in particular, the Allianz study predicts a 60 percent growth for this year. 50 percent growth is projected for the United States in 2022 and 2023. The U.S. EV market could grow much faster if the Build Back Better Act grant program goes into effect. Globally, the study predicts an increase in EV sales of 50 percent for this year and thus a total market share of NEVs of 12 percent. In 2017, these accounted for just one percent of the total market. By 2030, half of all light vehicles sold worldwide could be in the NEV sector.
Charging infrastructure cannot be maintained
According to the authors, however, investments in the infrastructure will not keep up and continue with strong sales growth in the future. Examples of charging stations: In 2014, the EU established a maximum ratio of ten e-cars per public charging station with the installation of one million charging stations by 2025 as a target. In 2021, however, only 230,000 charging stations were counted in the EU, which means that there were ten newly registered electronic vehicles per charging station in 2021 alone. The study sees gaps in funding, especially for the charging infrastructure in Europe, and thus also in the promotion of green economy, which, however, should be significantly increased in order to achieve the 1.5 degree target set by the EU .
Investment should also be increased to cover the growing demand for lithium. While lithium demand for batteries accounted for about a quarter of 2010, it is expected to be 95 percent by 2030. According to the study, with the projected increase in EV demand, there could be a spare space of more than 500,000 tons by 2030. they are therefore important that the industry now sets the course to close a spare space of this magnitude.