Important raw materials for e-car production are cheaper despite enormous demand. Several production countries have significantly increased the extraction.
Cobalt, lithium and graphite are important raw materials for e-car production-and, despite enormous demand, they are becoming more and more favorable. This is due to a significantly higher offer: Especially the production countries of China, Indonesia and the Democratic Republic of Congo have raised their production significantly, according to a raw material report by the International Energy Agency (IEA).
The prices for lithium between 2021 and 2022 have risen by eight times – on the other hand, they have decreased by over 80 percent since 2023. The prices are also declining for graphite, cobalt and nickel.
High dependence on three countries
According to the IEA, the significantly increased offer is three countries: more cobalt comes from the Democratic Republic of Congo, more nickel comes from Indonesia and more graphite and rare earth from China. The three states thus consolidated their market power when reducing raw materials. The important lithium, on the other hand, also comes from aspiring production countries such as Argentina or Zimbabwe.
“The average market share of the three leading mining countries in the most important energy minerals rose from 73 percent in 2020 to 77 percent in 2024,” said the IEA. The IEA experts warn the very large concentration in the market in the event of a crisis in the event of a crisis. As possible scenarios, they state weather events, technical disorders or trade barriers.
Late chains dependent on individual countries
If the most important supplier of a rare earth or a battery metal fails, an average of half of the demand remains unchecked, the IEA calculates in a scenario for 2035. The consequences for industry could be devastating-with enormous price jumps for electric car batteries in this country.
In addition, China does not only take a leadership role when dismantling and processing many metals. The country is also a leader in recycling: two thirds of growth in battery recycling have been held there since 2020.
WWF: Consequences for nature are often devastating
The WWF also warns that mining is limited to certain regions. “Behind a busy production in the Congo and in Indonesia there is also a highly driven destruction of nature,” says Tobias Kind-Rieper, raw material and mining expert in the environmental protection organization.
Four out of five mining projects are already in or near nature reserves worldwide – with often devastating consequences for the environment. The EU has to do more to counteract this.
