Ukraine Could've Supplied Vast Majority of Raw Materials for EV Batteries

The War in Ukraine could have a near-catastrophic effect on one of the fastest-growing industries. Or at least, it could completely reorder the supply chain or otherwise ensure that it remains the exclusive domain of China.

I’d previously mentioned how the War in Ukraine could cause neon shortages – Ukraine provides the U.S. with 90% of its semiconductor-grade neon – and palladium shortages (Russia produced 2.6 million troy ounces of palladium in 2021, 40% of the global supply).

But Ukraine also has abundant supplies of the raw materials needed for electric vehicle batteries – by one estimate, Ukraine could supply nearly all the iron and manganese ore deposits, lithium, aluminum, uranium, copper, graphite, and rare earth elements required for our electrified future.

Furthermore, Ukraine has abundant fossil fuel reserves – checked the price at the pump lately? – and taking them out of the industrial game, even for a short while, could guarantee that the world must continue relying on China for battery materials and Russia for its oil.

According to Battery Tech Online, Europeans bought 2.3 million battery EVs in 2021, second only to China at 3.3 million, and at present, China provides 98% of the EU’s supply of rare earth elements.

Meanwhile, 21 of the 30 critical raw materials needed for the future EV demand – including lithium, cobalt, manganese, and rare earth elements – can be found in Ukraine, which, for obvious reasons, hasn’t been able to keep their industrial machine moving.

And so, China will continue to dominate this particular game.