The race to decarbonize electric-vehicle batteries

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McKinsey EV batteries

Electric vehicles (EVs) are known for their low carbon footprint in operation, but the production of their lithium-ion batteries is highly carbon-intensive, accounting for 40 to 60 percent of total production emissions.

As demand for EVs grows, manufacturers are racing to reduce these emissions, and individual OEM decisions can make a substantial difference. Factors such as design choices, vehicle type, range, and freight requirements, as well as production and sourcing locations, all affect the carbon footprint of different OEMs. However, steep reductions in emissions from EV battery production are possible in the next five to ten years, and this article explores how this can be achieved.

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