BERLIN, Oct. 2 (Xinhua) -- An adequate supply of raw materials for batteries was becoming increasingly harder, according to a study by the German Economic Institute (IW) and the Bavarian Industry Association (vbw) published on Wednesday.
"For the year 2026, worldwide demand for lithium-ion batteries is expected to be 14 to 24 times higher than in 2016," said vbw CEO Bertram Brossardt.
With the rising demand for lithium-ion batteries, the demand for cobalt, a central component of lithium-ion batteries, was increasing as well. The mining of cobalt and lithium was associated with "high risks", the study found.
The supply risks were resulting from the "concentration of these raw materials on fewer producing countries," according to the study.
Out of the raw materials used for battery production, cobalt was associated with the highest risk.
"In order to succeed in the energy revolution and digital transformation, we need very specific raw materials in sufficient quantities. Shortages, on the other hand, can paralyze entire value chains and jeopardize our competitiveness," Brossardt said.
Following the new climate measures recently announced by the German government, demand for batteries could be even higher, added Brossardt.
To reach its national climate target, the German government is seeking to have seven to ten million electric vehicles registered in Germany by 2030.