The United Nations Conference on Trade and development recently released a special report, pointing out that the vigorous development of global electric vehicles has led to a surge in demand. It is estimated that 23 million passenger cars will be produced worldwide by 2030.

The report said the importance of electric transport and raw materials used to make rechargeable car batteries is increasingly prominent, and the demand for such raw materials is expected to grow rapidly, while the importance of petroleum energy is declining. At present, global efforts to reduce greenhouse gas emissions are expected to stimulate further investment in green energy production.

According to the report, if the source of raw materials for EV rechargeable batteries can ensure sustainability, then rechargeable batteries will play an important role in the global transition to a low-carbon energy system and help reduce greenhouse gas emissions. In 2018, the market size of the world's most common electric vehicle lithium-ion battery is estimated to be $7 billion, and it is expected to reach $58.8 billion by 2024.

At present, the raw material reserve of electric vehicle battery is highly concentrated in several countries, and the added value is limited. Nearly 50% of the world's Cobalt reserves are in Congo, 58% of lithium reserves are in Chile, 80% of natural graphite reserves are in China, Brazil and Turkey, and 75% of manganese reserves are in Australia, Brazil, South Africa and Ukraine.

This highly concentrated phenomenon is easily affected by political instability and ecological environment damage and other adverse factors. Once the supply of raw materials is interrupted, it may lead to tight market, price rise and automobile battery cost rise, thus affecting the global transition to low-carbon electric transportation. Therefore, increasing investment in green technology and reducing dependence on battery raw materials will help to reduce the vulnerability of lithium and cobalt supply shortage.

Pamela cook Hamilton, director of the international trade division of the United Nations Conference on Trade and development, said: "as investors become more cautious about the future of the oil industry, alternative energy sources such as batteries will become more important. The rising demand for strategic raw materials for manufacturing electric vehicle batteries will open up more trade opportunities for countries supplying these raw materials. It's important for these countries to expand their capabilities and move up the value chain. "

Source: China Environment News