Metals like lithium, cobalt, and copper are crucial in the ongoing automotive industry revolution driven by EVs. Strict regulations, government incentives, and growing EV adoption are driving demand for these metals used in battery production. As a result, metal prices are rising due to supply-demand imbalances, despite EVs still having a small market share. Coface predicts that these price trends will continue for the next two years.
Different battery designs or hydrogen as an energy source may not relieve pressure on metal usage, even though high integration costs drive research into alternative technologies. However, such efforts could change the landscape in the long run with countries competing to lead in next-gen vehicles.
Find out more here: https://www.coface.com/News-Publications/News/Is-the-electric-vehicle-metals-boom-sustainable
