Driving Demand: Assessing the impacts and opportunities of the electric vehicle revolution on cobalt and lithium raw material production and trade

This policy brief examines the opportunities and risks for developing countries resulting from the increased demand for lithium and cobalt used in electric vehicle (EV) batteries, emphasizing the role of trade policy in capturing value and managing overinvestment.

• The demand for lithium for lithium-ion batteries is expected to increase over the coming decades, whereas the cobalt market is expected to tighten due to toxicity and environmental, social, and governance (ESG) issues related to mining.
• Chile possesses 50% of global reserves, offering opportunities for value addition and revenue, though realizing development objectives requires policy coordination and local stakeholder engagement.
• The Democratic Republic of the Congo holds a virtual monopoly on global cobalt supply and faces a significant risk of overinvestment; the report suggests reinvesting revenues into education, governance, and basic infrastructure to support other local extractive industries.
• Batteries are a primary component of electric vehicles, representing between 25% and 33.3% of the total production cost.

APA

Loyola,, R. B. B. M. M. (2021). Driving Demand: Assessing the impacts and opportunities of the electric vehicle revolution on cobalt and lithium raw material production and trade. International Institute for Sustainable Development. https://www.iisd.org/publications/electric-vehicle-cobalt-lithium-production-trade

Chicago

Loyola,, Richard Bridle,Christophe Bellmann,Mostafa Mostafa,Tom Moerenhout,Vicente. Driving Demand: Assessing the impacts and opportunities of the electric vehicle revolution on cobalt and lithium raw material production and trade. International Institute for Sustainable Development, 2021. https://www.iisd.org/publications/electric-vehicle-cobalt-lithium-production-trade.

Wikipedia

{{cite report |last1=Loyola, |first1=Richard Bridle,Christophe Bellmann,Mostafa Mostafa,Tom Moerenhout,Vicente |title=Driving Demand: Assessing the impacts and opportunities of the electric vehicle revolution on cobalt and lithium raw material production and trade |publisher=International Institute for Sustainable Development |date=21 July 2021 |url=https://www.iisd.org/publications/electric-vehicle-cobalt-lithium-production-trade |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{loyola2021driving, author = {Loyola,, Richard Bridle,Christophe Bellmann,Mostafa Mostafa,Tom Moerenhout,Vicente}, title = {{Driving Demand: Assessing the impacts and opportunities of the electric vehicle revolution on cobalt and lithium raw material production and trade}}, institution = {International Institute for Sustainable Development}, year = {2021}, month = jul, url = {https://www.iisd.org/publications/electric-vehicle-cobalt-lithium-production-trade}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }