Raw material supply seen as critical for EV transition

An 18-country task force under the IEA is examining ways to ensure that raw material supply-demand imbalances do not interrupt the global transition to electric vehicles (EVs).

"We have to make sure that critical raw materials are available in significant quantities," said the operating agent for the IEA's Hybrid Electric Vehicle Technology Collaboration Programme Bert Witkamp.

"The transition to electric vehicles can be very quick, but it depends on the supply of critical raw materials." These include lithium, nickel, cobalt, graphite and manganese.

Studies by the task force have shown that German automaker VW will build 22mn EVs over the next decade and will totally stop internal combustion engine (ICE) vehicle production by 2026. VW forecasts that EVs will cost the same as ICE vehicles by 2023.

While China is the world's biggest consumer of EVs, Norway is the country with the highest percentage of EV penetration in its overall vehicle fleet. More than 60pc of vehicle sales in Norway in 2018 were EVs. Diesel vehicle sales have dropped to around 15pc of the Norwegian market in the past years.

"While we have a lot of countries and companies working with us on our electro-mobility programme, we need more direct participation from the mining industry, the producers of the critical raw materials that we need," Witkamp said.

"We are looking for partnerships and collaboration with mining and refining companies in Australia. I did not realise just how many of the critical raw materials you have in the ground here. This is not well known in Europe."

The IEA task force is also investigating the life cycle impact of EV batteries, recycling and alternative technologies as part of its mandate towards reducing road transport emissions to as close to zero as possible by 2050.