As the global demand for clean energy and sustainable development grows, the battery industry is one of the industries that can provide solutions. However, due to the current shortage of battery materials, the development of the battery industry has been limited. However, new technologies and governance rules are driving the production and supply of battery materials, and it is expected that supply and demand will be balanced in the next two to three years. The main reason for the current shortage of battery materials is the increased use of electric vehicles. Statistics show that by 2030, more than 120 million electric vehicles are expected to be on the road in the world, and the market size has reached 147 billion US dollars in 2020, and will continue to grow rapidly in the next few years. Therefore, in order to achieve this goal, a large number of battery materials are required, including metals, compounds, polymers, etc. However, the production of these materials is subject to many constraints, including unstable markets, shortages of raw materials, and supply chain bottlenecks.
However, with the advancement of technology and the promotion of global policies, the shortage of battery materials is being improved. First, new manufacturing techniques and materials are being developed. For example, some countries are developing new types of batteries (such as solid-state batteries, lithium-sulfur batteries, lithium manganate batteries, etc.), which have higher energy density and lower cost, and can replace traditional lithium-ion batteries. Second, policy regulations are also having an impact on the supply of battery materials. Countries around the world are gradually implementing policies such as carbon emission regulation, carbon tax, and clean energy development funds to encourage more companies and institutions to join the electric vehicle industry and completely improve the supply of battery materials.
Another factor that could affect the supply of battery materials is fluctuations in market demand. Although the demand for electric vehicles is expected to continue to increase, it is still likely to be affected by the global economy. If car sales fall, material supplies could also be affected. Likewise, battery material makers may reduce production as market demand changes. These uncertain factors may cause fluctuations in the prices of raw materials used in battery materials, but they are unlikely to affect the development prospects of the entire industry.
Therefore, although the supply of battery materials is currently in short supply, it is foreseeable that the supply and demand of battery materials will be balanced in the next two to three years. This outlook is based on several factors. First, governments and industry groups are promoting the development of electric vehicles and encouraging investment in battery research and development. Second, there are more and more international agreements and treaties aimed at controlling issues such as energy waste, climate change, etc., which will boost the demand for electric vehicles and batteries. Finally, many large power plants have begun to replace fossil fuel generation with renewable energy sources such as photovoltaics and wind power, which will also promote the development of battery technology.
All in all, the shortage of battery materials may not be an obstacle to the rapid development of the electric vehicle industry. Although there is currently supply chain pressure, the implementation of new technologies and policy regulations will promote the growth of battery material supply, making battery material supply and demand gradually balance. We have reason to believe that in the next two to three years, the general trend of balance between supply and demand of battery materials will continue to develop, and the prospects of the battery industry will be even broader.
