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Visit McKinsey to read the article.
“Will the availability of these materials constrain greater EV penetration? Optimistically, no. Even with the predicted rise in input costs, batteries can still come close enough to the $75 to $100 per kilowatt threshold needed to approach broad ICE price parity. While concerns such as a “cobalt cliff” exist and demand implications could present a temporary speedbump, the constraints and uncertainties should be addressable. Shifting to other battery chemistries can mitigate risks of shortage. Mining more of the raw materials will also be needed, which, we estimate, will require investments of $100 billion to $150 billion. As well, mining’s hard realities will still apply, including lead times of up to several years and ecological and social concerns in regions within Africa and South America where much of these raw materials are found. Even as a green solution, in other words, EVs will have costs as well as benefits for society, our environment, and the resources we consume.”