Electric vehicle supply chain

The electric vehicle supply chain comprises the mining and refining of raw materials and the manufacturing processes that produce lithium ion batteries and other components for electric vehicles. The lithium-ion battery supply chain is a major component of the overall EV supply chain, and the battery accounts for 30–40% of the value of the vehicle. Lithium, cobalt, graphite, nickel, and manganese are all critical minerals that are necessary for electric vehicle batteries. There is rapidly growing demand for these materials because of growth in the electric vehicle market, which is driven largely by the proposed transition to renewable energy. Securing the supply chain for these materials is a major world economic issue. Recycling and advancement in battery technology are proposed strategies to reduce demand for raw materials. Supply chain issues could create bottlenecks, increase costs of EVs and slow their uptake.

The battery supply chain faces many challenges. Deposits of critical minerals are concentrated in a small number of countries, mostly in the Global South. Mining these deposits presents dangers to nearby communities because of weak regulation, corruption, and environmental degradation. These communities face human rights violations, environmental justice issues, problems with child labour, and potentially generational legacies of contamination from mining activities. Manufacture of battery technology is largely dominated by China. However burning less petroleum products in vehicles can reduce the environmental impact of the petroleum industry because, as of 2023, most petroleum is used in vehicles.