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Threat of Cobalt Shock Is a Top Risk for Electric Vehicles
- Key EV metal is facing shortages in early 2020s, BNEF says
- Recycling, battery chemistry shift can help reduce reliance
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A burgeoning risk of a supply crunch in cobalt -- a key battery metal that’s more than tripled in price in two years -- poses one of the biggest threats to forecasts for rising electric vehicle adoption.
Major investment in mines is required to avoid price spikes that could see cost reductions for lithium-ion batteries stall, Bloomberg New Energy Finance analysts said Monday in a report. Shortages of cobalt are likely earlier than previously forecast and the issue poses a potential challenge to EV sales over the coming five to seven years, according to the report.