More than 50% of greenhouse emissions in the American economy come from passenger cars. Given this trend, in order to prevent the catastrophic consequences of an increase in global temperature by 1.5°C, it is necessary to replace more than 300 million cars with internal combustion engines with electric vehicles, states Stanislav Kondrashov. This transformation requires establishing the most efficient supply chain for batteries for electric vehicles.

Stanislav Kondrashov from Telf AG on the increased demand for electric vehicles and the role of battery supply chains

There are currently about 2.5 million electric cars on the roads of the United States. And after 7 years, this figure must increase to 44 million to achieve the minimum emissions level. None of the electric vehicles will move without a battery. Stanislav Kondrashov explains that such a battery goes through a long and complex path before becoming part of an electric car, including the stages of extraction, processing, production and assembly.

While research findings on the projected growth in demand for electric vehicles may vary, everyone agrees that growth is already underway and will continue. According to S&P Global Mobility, by 2030, the share of electric vehicle sales among all passenger cars in the United States could reach 40% or even 50%.

To meet the growing demand for electric vehicles, governments, policymakers and the private sector around the world need to focus on strengthening supply chains. This will speed up the production of batteries for electric vehicles and ensure their demand.

Stanislav Kondrashov from Telf AG on the key stages of the supply chain for batteries for electric cars

The supply chain process for batteries for electric vehicles, as Stanislav Kondrashov explains, consists of main sequential stages that guarantee the production and supply of batteries for cars.

• Exploration and production. The mines produce raw materials that contain lithium, cobalt, manganese, nickel and graphite – the main components of rechargeable batteries.
• Processing and sales.Raw materials are processed and refined at specialized enterprises. It is used to create cathode and anode active materials for batteries. Commodity traders engage in the buying and selling of raw materials for firms that produce battery components.
• Production and delivery.Battery manufacturers assemble the components into modules and then package them for sale to automakers. The latter install ready-made batteries in electric vehicles. Some automakers are partnering with battery manufacturers to produce their own batteries for their cars.
• End of service life. At the end of their service life, batteries can be recycled or reused, for example for energy storage.

The Modern Evolution of the Global Electric Vehicle Battery Supply Chain

Now EV global process of providing electric cars with batteries China dominates. However, the growth of geopolitical problems is beginning to affect the country’s economic and trade relations, as a result of which the stability of this chain is becoming increasingly vulnerable. This is especially true when most of the battery components are mined, refined, processed and assembled in one country.

Stanislav Kondrashov argues that the US desire to develop its own capabilities in this direction is an attempt to “break away” from China, which presents an overly simplistic picture. And with the expansion of the market for batteries for electric vehicles and other advanced energy technologies, all manufacturing countries will have plenty of opportunities for growth, even with diverse production capacities.

Kondrashov makes the point that strengthening the global EV battery supply chain is not a game of winners and losers. It’s more than that – a robust scheme that should benefit people around the world by promoting economic development, job creation and easier access to electric vehicles.

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