EV manufacturers forced into mining to procure minerals
General Motors and other electric car manufacturers have problems procuring batteries for their production and are therefore moving into the mining industry in order to get first in line, reports The Wall Street Journal.
Car manufacturers have been surprised by low supplies of battery minerals such as lithium and nickel and are forced to ensure such deliveries from mines and mining companies, as a large portion of minerals needed for manufacturers’ production are still hidden in the ground.
The increased demand for commodities enabling battery production has led to intense global competition where vehicle manufacturers attempt to establish their own supply chains.
However, engaging directly in mining activities is not without risks and could pose a challenge to the financial stability of manufacturers, several sources tell The Wall Street Journal.
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