How Australia Stands to Benefit From an EV Boom

1 min read

There were an estimated 10,6 million EVs sold in 2022, a 57% increase from the 2021 number. As this number is only set to increase in the coming years, the EV boom is becoming ever more important. This means that the already well sought after minerals required to build EVs will be in even higher demand.

One such country that can benefit from this demand is Australia. Australia has all the critical minerals required to make up an EV. In fact, they are among the top countries in terms of reserves held for all these critical minerals in world. Major corporations in the country are ramping up the production of nickel, cobalt, copper & zinc. 

What separates Australia from other EV mineral-rich countries is their production capabilities. Experts in the industry expect the growth in demand for nickel & cobalt to increase fourfold and the demand for copper and zinc to double by 2050.

“Rare earths” are a group of 17 metals that form a less significant composition of EVs. They are found in batteries and other electrical components in EVs. There may be 4-5 kg of rare earths in each EV.

The country is also looking to shift its focus on making batteries and related components. This is because although they have large mineral reserves, they lag behind in the production game. The country is also investing in making battery chemicals which they could export to EV manufacturers across the globe.

Australia is also viewed as a politically safe and developed country with great minds in the mining sector.

In addition to increasing the size of their role in the EV mineral supply industry, Australia is making strides in EV ownership. Although only 1,95% of vehicles in Australia are EVs, EV sales have increased by 65% in 2022. The country also introduced a law to give EV owners 1 500AUD (R 17 700) registration fee discount and free vehicle registration for 5 years, in July 2022. Many critics argue, however, that Australia is too slow to adopt EVs and that their extraction and production of critical EV minerals lags behind demand.

Do you think Australia will live up to become the world’s largest and most important supplier of critical EV minerals? Share your thoughts by replying to this email!

For more information on EVs, or any other energy related articles, view the blog posts on my website and be sure to open my weekly emails every Tuesday at 9am CAT.

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