This Supply Crisis Could Cause Problems for EVs
If you follow Smart Profits Daily, you know that we’ve been calling for the mass adoption of electric vehicles (EVs).
And so far this year, EV sales are surging.
At the end of July, global EV sales for the year were at 3.2 million vehicles.
That’s 169% higher than sales at the same time last year.
The strength in EV sales came during a period of semiconductor shortages.
This was a surprise to some since EVs use more than double the semiconductors of their gas-guzzling counterparts.
Without the semiconductor supply issue, the number of vehicles sold would have been even higher.
But it’s not a semiconductor shortage that we should be worried about…
Rather, it’s a commodity shortage.
EVs need several metals for production like lithium, cobalt and nickel — to name a few.
And there’s a huge problem on the horizon…
EV Metals Are in Short Supply
EV adoption is occurring so quickly that the demand for metals will soon exceed the available supply.
According to a report from Deloitte, several metals needed for EV production are expected to experience supply shortages by 2025.
Plus, the production of certain metals is often controlled by a few countries, which could amplify the supply problem.
For example, China produces 85% of the world’s rare earth metal supply, and 70% of the world’s cobalt supply comes from Congo.
Disruption of supply in one of these areas would hinder global EV adoption.
A Solution for the Metals Shortage
Ian King and I recognized this issue early and looked for a company providing a solution.
We came across a company producing a rare earth metal used in 90% of clean energy vehicles.
Right now, production is controlled by China. But this company is in the process of changing that.
Ian has a brand-new presentation coming out soon with all the details. So, check back later this week for more info.
Research Analyst, Strategic Fortunes