The electric vehicle (EV) industry is facing numerous roadblocks that could prevent automakers from producing as many EVs as they desire and prevent consumer demand from materializing as quickly as anticipated. A new study titled 2023 Moving World Report published by investment firm UP.Partners highlights the various obstacles that the industry must overcome to achieve its goals.
Battery Raw Materials Shortage
One of the major roadblocks that the report highlights is a looming shortage of battery raw materials, which could put government mandates in conflict with manufacturing reality. The report predicts that EV battery demand will increase tenfold or more by 2030, but a massive dislocation between demand and supply of key materials such as lithium, cobalt, and nickel is likely to increase the cost of EVs to consumers, creating a stark finding amidst a global price war ignited by leader Tesla.
Other obstacles to the acceleration of EV production and demand in the US include ongoing turmoil in global supply chains, insufficient vehicle charging infrastructure, and an overloaded electrical grid. The report is based on dozens of interviews and cites technical and financial data from various sources, including the International Energy Agency, the U.S. Energy Information Administration, McKinsey, Silicon Valley Bank, and Carnegie Mellon University.
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Impact on Aviation
UP.Partners, which focuses on “the movement of people and goods on the ground, in the air, at sea and in space,” also looked beyond terrestrial vehicles to aviation. The report notes the dramatic rise in cargo drone deliveries in 2022 and a potentially “crippling” shortage of pilots by 2030. While aviation companies continue to pursue alternative technologies from batteries to hydrogen, Managing Partner Cyrus Sigari said that sustainable aviation fuel is the only rational pathway to reducing aviation carbon emissions over the next 20 years.
The 2023 Moving World Report highlights the various challenges that the EV industry must overcome to achieve its goals. The report warns of a looming shortage of battery raw materials and other roadblocks such as ongoing turmoil in global supply chains, insufficient vehicle charging infrastructure, and an overloaded electrical grid. The aviation industry faces its own challenges, with a potentially “crippling” shortage of pilots by 2030. The report suggests that sustainable aviation fuel is the only rational pathway to reducing aviation carbon emissions over the next 20 years.