The Push for EV Adoption in North America Means More Mines

Governments worldwide, including Canada and the US, are directing a transition towards electric vehicle (EV) technology, aiming to phase out internal combustion engines in favor of battery-powered vehicles. According to a new report released by the @FraserInstitute, Canada targets 35% of new medium and heavy-duty vehicles to be electric by 2030, rising to 100% by 2040. Similarly, the US aims for 50% of new passenger cars and light trucks to be electric or hybrid by 2030.

According to the International Energy Agency (IEA), meeting global EV adoption goals by 2030 will demand the establishment of 50 new lithium mines, 60 new nickel mines, and 17 new cobalt mines. Furthermore, cathode materials will necessitate an additional 50 mines, while anode materials will require another 40. The production of battery cells and EVs collectively will demand the establishment of 90 and 81 new mines, respectively, totaling 388 new mines.

The U.S. aims for half of all new passenger cars and light trucks to be electric or largely electric hybrid by 2030, a mere six years from now. Furthermore, the Biden Administration has mandated that the federal government's vehicle fleet transition to 100% zero-emission vehicles by 2035 through an executive order.

Establishing internal supply chains for these crucial EV materials within such a short timeframe presents a significant challenge. This misalignment between aggressive EV goals and the slow pace of mineral production poses a substantial risk to achieving successful EV transitions.

To read the full report, visitwww.fraserinstitute.org/categories/energy.