Abstract for: An integrated supply chain analysis for cobalt and rare earth elements under global electrification and constrained resources

As global electrification becomes more prominent, demand is projected to increase for electric vehicles (EVs), their components (EV batteries, rare earth traction motors), and their raw materials (cobalt, rare earths). To analyze the supply chain constraints associated with these components and raw materials, a system dynamics model was developed to simulate the interactions between the rare earth and cobalt supply chains. Results showed that under current understanding of raw material resources, production of the projected volume of EVs could be inadequate. To meet the aggressive EV volume sale projections set by the International Energy Agency, EV manufacturers will need to implement a large portion of traction motors without rare earths and utilize non-cobalt batteries as much as possible. On the supply side, a much faster ramp-up than what was modeled would be needed to meet much higher demand than current market forecasts.