Nick Carey

(Reuters) – Data shows there is enough nickel and lithium to produce up to 14 million electric vehicles (EVs) globally in 2023, so Europe should secure more raw materials to shift away from oil faster, campaign group Transport and Environment (T&E) said on Tuesday.

In a study based on BloombergNEF data on global maximum volumes of EV battery-grade nickel and lithium, T&E said that in 2025 there would be enough to make 21 million EVs globally.

Excluding Russian nickel, T&E said there should be sufficient raw materials for 19 million EVs in 2025.

From just under 2 million units in 2020, global EV sales have more than doubled to 4.22 million by 2021.

LMC Automotive Consulting has predicted that global EV sales would reach 9 million by 2023, and 14.9 million by 2025.

Over the past year, EV battery material prices have soared. The price of battery-grade Nickel has broken new records since the invasion in Ukraine. Russia is a large nickel producer.

A few analysts warn of battery supply shortages in short term as the industry produces zero-emission vehicles quickly. The glut could follow as an avalanche of battery plants and mining projects become online.

T&E said competition for lithium and nickel was fierce and noted both China and the United States had been working to ensure access to those raw materials.

Europe must follow Europe’s example and set up an agency for “sustainably sourced” critical metals.

“While China and the U.S. are flexing their policy muscle to secure supplies of critical metals, European leaders are scouring the globe for more oil,” said T&E senior director Julia Poliscanova. For energy independence and sustainability, the moment is now to focus on the sourcing of sustainable raw materials that the continent requires.