Study Warns 45% of EVs Risk Disruption from Cobalt Supply, DRC Controls 75%
TSLA•A study finds 45% of EVs use cobalt-based NMC/NCA batteries, exposing them to disruptions from the DRC’s 70–75% cobalt output concentration. With 94% of cobalt produced as a byproduct of copper and nickel mining, price swings in those metals could sharply curb battery-grade cobalt output.
1. Global EV Cobalt Vulnerability
The Chinese Society for Environmental Sciences study highlights that roughly 45% of electric vehicles still rely on high-density NMC and NCA battery chemistries, placing nearly half of the global fleet at risk if cobalt supply is disrupted. Given that the Democratic Republic of the Congo supplies 70–75% of raw cobalt and that 94% of cobalt production is tied to copper and nickel markets, any strike, export cap or metal price crash could trigger a cascading shortage across the EV sector.
2. Tesla's Mitigation and Remaining Exposure
Since 2020, Tesla has shifted its standard-range models to cobalt-free LFP batteries, reducing its dependence on the cobalt market for those vehicles. However, Tesla’s premium models and energy storage products continue to use NCA cells, leaving a significant portion of its higher-margin business exposed to potential supply shocks and metal price volatility.
