Global Supply Chain Challenges for Electric Vehicle Materials
The automotive industry faces significant supply chain disruptions due to geopolitical tensions involving the US, Iran, and Israel, particularly affecting essential materials for electric vehicle production. Key resources such as lithium, cobalt, nickel, graphite, and rare earth elements are predominantly sourced from specific regions, highlighting the industry's dependency on concentrated supply chains.
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Geopolitical issues, particularly in the Strait of Hormuz, are delaying the flow of materials essential for electric vehicle manufacturing. Lithium is primarily extracted from the 'lithium triangle' in South America (Chile, Argentina, Bolivia) and Australia.
Cobalt, with 60% sourced from the Democratic Republic of Congo, remains crucial despite efforts to reduce reliance on it. Nickel is mainly produced in Indonesia, Russia, and Australia. China dominates graphite production and processing, while the US, Russia, and Middle Eastern nations lead in sulfur production, a byproduct of oil refining. Additionally, China controls about 90% of rare earth element production and 80% of silicon used in semiconductors, stressing the industry's vulnerability to supply chain disruptions.
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