In the face of great pressure from environmental groups, the automotive market is racing towards electric energy sources. However, recent research shows phasing-out fossil fuels too quickly can lead to several problems.
Bank of America’s Global Research Report found shifting too quickly to electric vehicles could lead to short-term production collapses. Researchers also discovered it could cause over dependence on the Chinese communist regime, which has a monopoly on raw materials needed to manufacture batteries.
They warn the world is not ready for an overnight electric vehicle revolution, even if consumer demand soars.
In some of the world’s most developed countries, aging power grids are unprepared to meet an onslaught of higher demand for electric power. This is despite a growing number of countries abandoning gasoline consumers and connecting to the electricity grid back in May, according to the trade magazine Oil Price.
Introducing rules to make it mandatory for vehicles to store energy in batteries for operation can also be problematic. Although electricity consumption significantly reduces gas emissions per vehicle, overusing limited resources during the battery manufacture process is unavoidable. Electric vehicle batteries require a large amount of finite and very expensive metals. They also require rare earth minerals like cobalt and lithium.
Exploiting these minerals could lead to complex negotiations with global supply chains. These supply chains are not exempt from adverse environmental factors like mining volatility.
According to the bank, international supply of batteries for electric vehicles has reached critical levels. Researchers estimate the world risks completely running out sometime in the year 2025.
“Our updated electric vehicle battery supply [and] demand model suggests that global electric vehicle battery supply is likely to hit [a] ‘sold-out’ situation between 2025-26, with global operating rates reaching above 85 percent,” the study said according to Zero Hedge.
Another significant problem involves global security and how the global power equation will be distributed in years to come. The so-called “energy revolution” inevitably requires a huge dependence on the Chinese communist regime. The regime arguably monopolizes exploitation of the rare earth metals necessary for producing batteries and solar panels.
The Chinese regime controls about 90 percent of the market for most of these resources. The communist dictatorship shows no hesitancy in using its monopolistic power to influence international politics and diplomacy.
The report concludes any supply shortage will be largely due to growing market demand, which is simply unprepared for the levels at which electric vehicles are proposed to be adopted.
Driven by the left-leaning climate agenda, President Joe Biden is pushing to replace fossil fuels with alternative energy.
In this regard, Rep. Bill Johnson (R-Ohio) revealed energy measures and Paris Agreement, which the United States has recently rejoined, implies signatories must collaborate with the Chinese Communist Party to violate human rights in China.
“Nearly all of the solar energy panels sold in the European Union originate in China’s oppressed Xinjiang region,” he said in a statement.