According to a recent report produced by independent research organization A.T. Kearney Energy Transition Institute, automobile manufacturers will face challenges surfacing from supply shortages of natural resources for battery production as they move to electrify their fleet in line with government mandate to reduce carbon dioxide emissions.

“Electric car batteries rely on a host of rare materials —from lithium and nickel to cobalt. Battery makers around the world are struggling to secure supplies of these key ingredients as demand outstrips supply. This undoubtedly places pressure on carmakers, so the hunt for alternative technologies is on,” explained Romain Debarre, managing director, A.T. Kearney Energy Transition Institute.

Cobalt, the report held, is in particularly short supply globally and reserves could be depleted completely by the time 300 million EVs are produced —a modest proportion compared to the 1.2 billion cars on roads today.

Read the article at Economic Times.