A new study by researchers from East China Normal University and Lund University has revealed a looming crisis in the production of lithium, a critical component in electric vehicle (EV) batteries. The demand for lithium is expected to outstrip supply in Europe, China, and the US by 2030, potentially hindering the transition to cleaner energy sources.
The study warns that even a tenfold increase in domestic lithium production across these regions may not be sufficient to meet the rapidly growing demand for EV batteries. Lithium, typically sourced through mining, is essential for most EV batteries, and its shortage could lead to delays in meeting critical climate and energy goals.
The researchers estimated that Europe alone might need 792,000 metric tons of lithium carbonate equivalent by 2030, while production is expected to reach only 325,000 metric tons. To address this shortfall, the authors suggest shifting focus from personal EVs to public transport and adopting battery technologies that use less or no lithium.
Addressing the Lithium Shortage
Experts emphasize the need for immediate action to expand mining, diversify suppliers, and manage demand. “Lithium today is as important as gasoline in the industrial revolution,” said Qifan Xia, author of the study. “Without immediate action… the world risks delays in meeting critical climate and energy goals.”
The study’s findings have significant implications for the EV industry and policymakers. Ben Nelmes, founder of New AutoMotive, stressed that European policymakers must send positive signals to investors to support the EV battery supply chain. Separate analysis suggests that up to a quarter of a million jobs could be created in Europe’s EV battery production and supply chain in the next five years.
As the world transitions to cleaner energy sources, addressing the lithium shortage is crucial to meeting climate goals and supporting the growth of the EV industry.
