The International Energy Agency (IEA) recently released its Global EV Outlook 2024 report, emphasizing the critical need for external support to finance large-scale mining projects. However, in a surprising turn of events, several mining companies, including Albemarle, Core Lithium, Liontown Resources, and Pilbara Minerals, have announced project spending reductions, lower dividends, and job cuts.
Moreover, nickel and cobalt projects in Australia have been either delayed or halted, impacting companies like BHP, First Quantum Minerals, and Wyloo Metals. The situation is mirrored in the US, with Piedmont Lithium announcing a 25% reduction in its workforce.
Despite these challenges, the EV industry continues to demonstrate resilience and growth. Global EV sales in the first quarter of 2024 saw a 25% increase compared to the same period in 2023. This growth trend is on par with the year-on-year increase seen in 2022.
Looking ahead, the IEA predicts that by 2024, EV market shares could reach 45% in China, 25% in Europe, and over 11% in the United States – regions that collectively accounted for around 65% of global car sales in 2023. Chinese manufacturers have been driving much of this growth, producing more than half of all electric vehicles sold worldwide in 2023.
As demand for battery metals continues to rise, the IEA highlights the importance of rapid growth in mining and refining capacities to avoid potential supply chain bottlenecks. The introduction of innovative technologies, such as sodium-ion batteries and mature battery chemistries like lithium iron phosphate, may help mitigate the need for critical minerals in the future.
