The global shift to electric vehicles (EVs) is accelerating, but McKinsey’s latest report warns of significant strain on the supply chain for critical battery materials by 2030.
EV sales are expected to jump from 4.5 million units in 2023 to 28 million annually by the end of the decade. This unprecedented demand will put pressure on the availability of essential materials like lithium, high-purity manganese, and graphite.
While lithium iron phosphate (LFP) batteries reduce reliance on scarcer materials like cobalt and nickel, they still depend heavily on lithium, manganese, and graphite. The shift to LFP batteries offers some relief but does not eliminate the imbalances in the supply chain, highlighting the need for continued focus on securing sustainable sources.
Adding to the challenge, upstream raw material mining and refining these materials account for about 40% of an EV battery’s total emissions. McKinsey’s report emphasizes that reducing emissions in these processes is critical.
“Sourcing materials from supplies committed to low-emission fuels and power sources could cut emissions by as much as 80% in mining and refining phases. This needs to be paired with a strong focus on cost reduction given the current profitability pressure in the battery industry,” said Raphael Rettig, partner at McKinsey.
Smaller but essential materials, such as high-purity manganese, also face growing challenges. Currently, manganese contributes around 4% of emissions in a typical lithium-nickel-manganese-cobalt (LI-NMC) battery. However, as LFP batteries gain popularity and larger materials like lithium and nickel are decarbonized, manganese’s relative emissions intensity could nearly double without targeted strategies to address the imbalance.
Toyota’s recent $4.5 million grant from the US Department of Energy to develop more sustainable EV batteries is a step toward addressing these challenges. However, it’s clear that solving the broader supply chain issues will require a collective effort from the entire industry to balance demand with sustainable practices and minimize emissions. The path forward will define the EV industry’s ability to meet climate goals while scaling up production.
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On today’s downright giddy episode of Quick Charge, at least one Cybertruck owner is sick of people making fun of his ride – but Tesla won’t let him trade it in. Plus, the Associated Press reports that Tesla is suing its own customers, and Nissan is adding AI to its EVs to its record time.
Bloggers and journalists might be in trouble if they keep writing about Tesla’s shortcomings – especially in China, where the company has allegedly been using its pull with the government to put pressure on journalists to keep their spin on the company positive. We’ve also got some new pics of the upcoming 2026 Nissan LEAF and a story about the rising cost of solar under Trump’s second administration.
New episodes of Quick Charge are recorded, usually, Monday through Thursday (and sometimes Sunday). We’ll be posting bonus audio content from time to time as well, so be sure to follow and subscribe so you don’t miss a minute of Electrek’s high-voltage daily news.
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The Nature Conservancy (TNC) and the Cumberland Forest Limited Partnership are turning former Appalachian coal mines into clean energy hubs. They just announced new agreements with Sun Tribe Development and ENGIE to build 14 solar farms and three battery storage systems across 360 acres in Virginia, Tennessee, and Kentucky.
This marks the second round of clean energy projects launched under TNC’s Cumberland Forest Project.
These projects aren’t just about clean energy – they’re about proving that clean energy can be developed on former Appalachian coal mines in a way that benefits the environment and local communities. The solar and storage hubs are expected to bring in more local tax revenue, create short-term construction jobs, and establish a community fund to support additional local initiatives.
Brad Kreps, TNC Clinch Valley director, said, “Developing projects on former coal mines – and in a way that engages with people in the local area so that communities can benefit – takes ingenuity, skill, and determination. Ultimately, we selected Sun Tribe and ENGIE, two experienced developers that have a great interest in bringing this vision to life.”
Once online, these projects will generate around 49 megawatts (MW) of solar energy and 320 MW of battery storage – enough to power 6,638 Appalachian homes annually.
Sun Tribe’s projects will be in Virginia and Tennessee. It’s planning one 5 MW solar project and three utility-scale battery storage systems ranging from 80 MW to 150 MW. These storage projects will improve grid reliability and help cut costs for utility customers by reducing the need for future grid upgrades.
“Locating solar and battery storage on former mine lands makes perfect sense to us,” said Danny Van Clief, CEO of Sun Tribe Development. “These sites and the communities they rest within have powered our country for more than a century – all we have to do is reimagine them for today’s energy technology.”
ENGIE, meanwhile, is developing 13 community-scale solar projects across Virginia, Tennessee, and Kentucky that will take advantage of Inflation Reduction Act incentives to help keep costs down. They’ll range in size from 1 MW to 6 MW, bringing clean energy access to more local communities.
“ENGIE is thrilled to collaborate on the development of these projects with The Nature Conservancy,” says Kristen Fornes, ENGIE head of distributed solar and storage. “These initiatives not only contribute to the reduction of greenhouse gas emissions but also generate employment opportunities, rejuvenate local communities, and enhance access to clean energy in areas where it is most needed.”
This latest announcement builds on previous first-round work by TNC, Sun Tribe, and Dominion Energy to bring renewable energy to Appalachia. Since 2021, Sun Tribe and Dominion Energy have been working on plans to generate 140 MW of renewable energy across eight sites in the Cumberland Forest. The first project, Wildcats Solar, is a 10 MW array planned for Wise County, Virginia. Expected to start construction by 2026, it’s projected to generate $800,000 in tax revenue for the community over its lifetime. Additional projects from the first round are set to be online by 2029.
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The most interesting one is “Armored Tesla (Production Units)”, which is worth $400 million. Strangely, the item is listed under the NAICS code “311999 – All Other Miscellaneous Food Manufacturing.”
The program has a target for delivery in Q4 through the next 5 years.
There are several other similar and strange budgeted items that are linked to the wrong categories:
You have “ARMORED SEDAN” under “Soft Drink Manufacturing,” “ARMORED BMW X5/X7” under “Bottled Water Manufacturing,” and finally, ARMORED EV (NOT SEDAN) under “Ice Manufacturing.”
However, all these other armored vehicle-related items are budgeted at a fraction of the $400 million for Tesla vehicles ($50 million, $40 million, and $40 million, respectively).
The State Department procurement forecast website mentions that the list was last updated in December – before Trump entered office.
Electrek has contacted the State Department for a comment, and we will update you if we get an answer.
Tesla has claimed that its Cybertruck is “armored” and “bulletproof”, but its armored capacity is quite limited. It can likely deflect low-velocity bullets if they hit the doors, but that’s about it.
I am not against armored electric vehicles. If you need armored vehicles, you might as well make them electric.
However, this is certainly weird. Why does the State Department need $530 million worth of armored vehicles? And why is it listed under a bunch of unrelated categories that don’t make sense?
Sounds like a job for DOGE? However, Elon will need to recuse himself from that one, I guess.
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