SUPPLY CHAIN & OPERATIONS
“ Electric vehicles offer sustenance from an economic and planetfriendly point of view ”
investors afraid of these movements . Even though the world predicts higher demand for EV-based hardware , price volatility is a concern . Indeed , the price decrease of minerals in the 2017-2020 period compromised many investors ' confidence in these ores .
The problem is more common in the case of commodities with relatively small markets . While copper and aluminium tend to get sufficient capital investments , lithium and cobalt are on the verge . The same is the case for platinum and nickel , which hold a relatively better position than lithium and cobalt but are still undermined by aluminium and copper . While it is true that aluminium and copper make up most of the bulk in the EV industry , these vehicles cannot fulfil their purpose without the proper supply of lithium / cobalt .
Market analysts and industry veterans have recommended a few ways to approach the unique scenario . However , we should also keep in mind that companies that start ore processing systems in Europe and elsewhere need to adhere to the changing ESG pressures . Considering these , organisations must take a long-term approach to capital investment with the primary objective of supplying as per the demand . In addition , they must diversify the strategy . It will also be essential to have consortiums that can help them predict and act according to the government policies .
96 September 2021