Lucid Motors And Rivian: Growth Plans Could Be Thwarted By A Raw Materials Shortage


  • Three critical battery metals, lithium, nickel, and cobalt, are all positioned to enter a significant shortage by 2024 that is expected to last throughout the rest of the decade.
  • This issue is made worse by the fact that there are few alternatives to these metals and, in the case of lithium, there are none.
  • While other automakers have been able to secure supply by communicating directly with miners, Lucid and Rivian lack the size, money, and power to do so.
  • This shortage will impact both companies’ competitive strength, vehicle output, and ability to maintain profitability.
  • This risk seems to be largely overlooked and stands to severely limit the growth of both companies, therefore implying a significant overvaluation at current prices.

Ready To Charge


Supply chains have gained a lot of attention over the past few years, especially in the automotive sector. But as most automakers are now on the tail end of having to deal with parts shortages, I believe electric vehicle (“EV”) makers are just

Time for a new lithium project to production


Future lithium supply

S&P Global Market Intelligence

Albemarle lithium demand projection


Nickel supply vs demand

Rystad Energy

Impact on critical battery metals, such as lithium, on total battery cost

Storage Lab

Disclosure: I/we have a beneficial long position in the shares of LAC, GM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

While Rivian and Lucid may not be the best ways to take advantage of booming electric vehicle demand, there are plenty of other ways to play the industry. At Green Growth Giants I provide investors with a model portfolio, and regular articles, to uncover the companies with the greatest upside in the green revolution. Try a two-week free trial to gain access to the #1 clean investment subscription and see how you too can beat the market.

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