Tesla manager warns of global shortage of battery minerals in near future

Some minerals cannot be easily obtained, due to underinvestment in the mining sector

A Tesla manager has warned the electric vehicle (EV) industry of an upcoming global shortage of battery minerals, including copper, nickel and cobalt.

On Thursday, Sarah Maryssael - Tesla's global supply manager for battery metals - addressed a closed-door industry conference in Washington, where she warned that the EV industry may face a shortage of minerals in the future due to underinvestment in the mining sector.

That's according to a report published in Reuters, based on information received from two industry sources.

A Tesla spokesman clarified to Reuters that Maryssael's comments were related only to the EV industry, and referred to the supply challenges that automakers may face in the long term with regards to some selected metals.

Over the past few years, the electric vehicle revolution has boosted the demand for lithium-ion batteries, which, in turn, has increased the demand for the minerals used to make rechargeable batteries. The increasing popularity of electric cars has also made Tesla the number one battery consumer in the world.

However, many automakers are now worried about the supply of minerals like cobalt, lithium and nickel in the future, as these materials are not widely mined.

In the conference, Maryssael said that Tesla will continue to use more nickel in battery cathodes.

She also added that prices for cobalt, graphite, nickel and lithium could increase in the future due to their high demand and limited supply. She also emphasised the need for more investment.

Maryssael accepted that funding mining projects in certain countries had been challenging in the past, but added that the industry could now ensure better supply of battery minerals through partnerships with miners in countries such as US, Australia, Canada and Chile.

In 2018, Australia signed an agreement with the USA to boost joint research and development of minerals, which are considered critical for the US economy.

Benchmark Minerals Intelligence hosted the conference, which more than 100 people attended, including representatives from the mining industry, lawmakers and regulatory agencies.

The conference featured speakers from the US Department of Energy and Department of State, as well as from Standard Lithium Ltd, Pioneer Resources Ltd., Albemarle Corp., Livent Corp., and Securing America's Future Energy.