Threat of Cobalt Supply Shock Is Top Risk for Electric Vehicles

A burgeoning risk of a supply crunch in cobalt—a critical battery metal that’s more than tripled in price in two years—poses one of the biggest threats to forecasts for rising electric vehicle adoption.

Major investment in mines is required to avoid price spikes that could see cost reductions for lithium-ion batteries stall, Bloomberg New Energy Finance analysts said May 21 in a report. Shortages of cobalt are likely earlier than previously forecast and the issue poses a potential challenge to EV sales during the coming five to seven years, according to the report.

“The long lead time to bring ...