Car makers may need to “get out their chequebooks” and take a stake in mines to guarantee materials for their shift to electric vehicles, according to research and consultancy group Wood Mackenzie.
The comments follow automotive giant Ford’s announcement yesterday it would invest US$11 billion by 2022 in electrification, and expand its line-up to 40 EVs globally including 16 full battery EVs by 2022.
Wood Mackenzie director metals markets Gavin Montgomery said Ford planned to use NMC lithium-ion batteries in its EVs and it would be a challenge securing supply of the key raw materials, namely lithium, nickel and cobalt.
“Increasingly we are seeing automotive companies starting to negotiate for supply of these materials directly with the mining companies,” he said.
“It may be the case that some automotive companies get out their chequebooks and take a stake in mines or new mine projects in order to lock-in future supply.”
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