Europe is understood to be facing a severe shortage of key materials needed to make the batteries that power the EU's clean energy transition.
Eurometaux, which represents European non-ferrous metal producers and recyclers, said independent research by KU Leuven research university in Belgium showed that the EU could face global supply shortages for five metals around 2030, in particular: lithium, cobalt , nickel, rare earth and copper.
Meanwhile, coal-powered metal production in China and Indonesia will dominate global battery metal and rare earth smelting capacity growth, while Europe will remain reliant on Russia for aluminum, nickel and copper supplies, the study said.
Europe will face a "severe shortage" over the next 15 years as there is no more mining and refining of the metal to supply the batteries needed for electric vehicles, energy storage systems and renewable energy infrastructure, the study said.
The study recommends that Europe should work with "proven responsible suppliers" to manage environmental and social risks, and raises questions about why the EU has not followed other big countries such as China in investing in mines to ensure environmental, social and governance standards.
Three-quarters of battery cathodes manufactured in Europe will be produced from recycled metals by 2050, if Europe “invests heavily now and addresses bottlenecks,” the study said.
However, the study also said that recycling "will not be the main source of supply for electric vehicle batteries and renewable energy technologies in Europe until 2040".
"Compared to the current limited use in Europe", to achieve the EU's so-called "green deal" climate-neutral target by 2050, demand for lithium will increase by 35 times, making it increasingly scarce, the study said. The demand for rare earth metals will increase by 7 to 26 times.
