EV Market Running Short of Essential Metals

The electric vehicle story is only accelerating.  Countries around the world are pushing for further adoption.  Auto companies, like Tesla Inc. (NASDAQ:TSLA) are seeing substantial demand.  Unfortunately, the industry is beginning to run into supply issues.  For example, we already know we’re running short of lithium supply, which is good news for suppliers, such as Albemarle Corp. (NYSE:ALB).

Even silver, a critical material in the auto sector “is perennially in deficit with demand outstripping supply by millions of ounces,” says 401k Rollover.  That’s good news for silver companies, such as Hecla Mining Company (NYSE:HL).

In addition, we’re running short of cobalt.  In fact, “We simply may not have enough supply. Research from MIT suggests there’s not enough ability to mine and process the material to meet demand,” reports Wired.  That’s good news for companies such as Wheaton Precious Metals Corp. (NYSE:WPM).

At the same time, the industry is running short of graphite supply.  By 2030, the world could see approx. 125 million EVs on the road, which means we’ll need a good deal of graphite, according to Mining News North.  “This is because graphite serves as the anode in the lithium-ion batteries that power these EVs, not to mention the growing number of portable tools and electronics that use the same type of battery.”

The problem is so severe, the USGS includes graphite on its list of 35 minerals and metals considered critical to the United States.