The electric car demand is dramatically increasing worldwide, with manufacturers pushing for faster production and more variety in the available models. However, there is a legitimate concern that the production – especially for batteries – places too much strain on the world’s current supply of minerals. There is a real danger that crucial resources are not plentiful enough to support expanded electric car production, and other minerals come from unstable conflict zones. In this article, we will discuss these factors and how they will affect the supply chain for electric cars.
The Growing Demand
Electric cars are lauded for their energy efficiency, as they produce less greenhouse gas emissions than vehicles that are powered by gasoline. Though they are still low in sales, Tesla and other auto companies have begun to develop electric cars that are appealing to luxury and mass markets. The purpose is to ensure that these cars become attractive for more than just their efficiency. It is essential for them to make the jump to mainstream acceptance in order to ensure that they can start replacing carbon-based vehicles and reducing emissions. There is a lot of ground to cover if these companies want to displace the internal combustion engine, which is far more popular and widespread.