The net-zero transition will require vast amounts of raw materials to support the development and rollout of low-carbon technologies. Battery electric

Toward security in sustainable battery raw material supply

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2024-12-23 13:00:08

The net-zero transition will require vast amounts of raw materials to support the development and rollout of low-carbon technologies. Battery electric vehicles (BEVs) will play a central role in the pathway to net zero; McKinsey estimates that worldwide demand for passenger cars in the BEV segment will grow sixfold from 2021 through 2030, with annual unit sales increasing to roughly 28.0 million, from 4.5 million, in that period.1 Kersten Heineke, Philipp Kampshoff, and Timo Möller, “Spotlight on mobility trends,” McKinsey, March 12, 2024. For producers of battery cells and raw materials, ensuring a reliable and ample supply of sustainable and affordable materials will be crucial to their competitiveness, the ongoing rollout of BEVs, and the net-zero transition overall.2 Global Energy Perspective 2024, McKinsey, September 17, 2024.

This article is a collaborative effort by Jakob Fleischmann, Michel Van Hoey, and Raphael Rettig, with Jonathan Lindley, Nicolas Goffaux, Nikola Vekić, and Patricia Bingoto, representing views from McKinsey’s Metals & Mining Practice and the McKinsey Battery Accelerator Team.

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