On the subject of electrification by the magic date of 2030, automakers are speaking a giant sport, however if you wish to know which corporations are severe about electrification, take a look at which corporations have lined up inventories of important battery minerals.
In line with a latest report from Transport & Atmosphere (T&E), carmakers within the European market have secured solely round 16% of the important thing battery metals they may want between now and 2030. T&E’s report, which was based mostly on an evaluation of publicly launched contracts, discovered that solely Tesla and BYD are doing sufficient to ensure provides of cobalt, lithium and nickel to fulfill their 2030 gross sales targets. Most European producers – besides Volkswagen and Stellantis – are far behind.
Solely six corporations – Tesla, BYD, VW, Ford, Renault and Stellantis – have long-term contracts for every of the three main metals or plan to vary battery chemistry to finish their dependence on one of many metals, so based on the analysis. Mercedes has just one publicly disclosed contract for a key mineral, and BMW has not disclosed sufficient details about the way it plans to safe nickel, cobalt or cathode supplies.
“There’s a clear hole between automakers’ electrical automobile goals and their essential minerals methods,” mentioned Julia Poliscanova, Senior Director Automobiles and E-mobility Provide Chains at T&E. “Tesla and BYD are far forward of most European gamers, who’re solely now waking as much as the problem of securing battery metals. This report ought to sound the alarm for CEOs and traders to interact additional upstream of their provide chains.”
The T&E examine additionally checked out accountable provide chain practices, together with traceability of uncooked supplies, low-carbon processes and safety of human and indigenous peoples’ rights. BMW, Mercedes-Benz and Volkswagen scored excessive marks on this element, whereas Tesla obtained a low rating. BYD scored zero as a result of T&E couldn’t discover any details about sustainable practices.
T&E additionally examined the resilience of automakers to provide chain shocks. On this class, Volkswagen, Stellantis and Mercedes-Benz achieved the best scores. These three and Renault are the one automobile producers supporting EU start-ups within the subject of battery element and mineral processing.
“Automobile producers’ provide chain methods will make or break the EV transition in Europe, and make some corporations redundant,” mentioned Ms Poliscanova. “Supporting native refining and battery element factories will probably be essential to their very own resilience. However the Europeans have a transparent lead in cleansing up provide chains, which is essential for shopper adoption and unlocking ESG finance.”
Supply: Transport & Atmosphere