Sustainability means meeting our own needs, without compromising future generations’ ability to achieve the same according to McKinsey. However, this is not only about natural resources, McGill adds. We also need social and economic resources to survive. Electricity is surely one of these assets. That’s why batteries are a critical factor in sustainability.
Therefore Battery Demand Will Continue to Grow
McKinsey sees battery demand growing 20% annually through to 2030. New manufacturing and infrastructure roles will help compensate for job losses in fossil fuels they believe.
But time is running short for North America and Europe to compete for market shares with China. Scaling up rapidly will be the key, McKinsey says. Because seven battery cell manufacturers are already at scale necessary to dominate.
However, purchasing-local incentives could turn out to be the deciding factor. But that would only be after governments accept locally-made batteries are a critical factor in their sustainability programs. Their strategies could include developing local solutions, and direct manufacturing incentives.
Scaling Up Battery Production Is a Critical Factor in Sustainability
McKinsey believes the manufacturing shortfall is equivalent to ‘about 90 additional gigafactories as we know them today’. These billion-dollar projects face major challenges, including securing funding, recruiting right talent, and training thousands of workers.
McKinsey suggests the following strategies to help overcome these obstacles:
1… Become a low-cost producer by applying lessons learned from previous projects.
2… Recruit top-skill workers while experienced battery specialists are still available.
3… Ensure reliable access to battery materials with scalable supply contacts.
4… Continue evolving in the direction of becoming a 100% sustainable enterprise.
5… Form partnerships with customers to cement mutually beneficial relationships.
McKinsey concludes its assessment by recommending governments play a positive role. They need to fast-track gigafactory approvals, and assist with securing loans, grants and guarantees it says.
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