Representational (AI generated).
Dubai: The disruption of the Strait of Hormuz amid the escalating conflict involving the United States and Iran is severely impacting the global electric vehicle (EV) industry, exposing a stark contradiction at the heart of the clean energy transition. Materials essential for building EVs are now trapped behind the same geopolitical bottleneck long associated with oil, raising urgent questions about the resilience of green supply chains, according to a report by Rest of World.
The Gulf region, particularly the United Arab Emirates, Bahrain and Qatar, has spent decades developing an aluminium industry tailored to the automotive sector as part of efforts to diversify beyond oil. That strategy now faces a major setback. With commercial shipping effectively halted through the Hormuz Strait, producers are unable to move automotive-grade aluminium—a material central to EV design—disrupting supply to manufacturers worldwide.
The impact is already visible. Aluminium Bahrain (Alba) has cut output significantly, while Qatalum has halted production altogether after energy infrastructure disruptions forced QatarEnergy to suspend gas supplies. These shutdowns have choked one of the most critical sources of lightweight, low-carbon aluminium used extensively in EVs.
Unlike conventional vehicles, EVs require substantially higher volumes of aluminium, which is used across multiple systems simultaneously, including battery housings, structural frames and heat management. This means disruptions do not affect a single component but ripple across entire production lines. The result is a cascading breakdown in manufacturing capacity, as automakers struggle to secure certified materials that meet stringent environmental and technical standards.
Major manufacturers are already feeling the strain. Toyota has reduced output by tens of thousands of vehicles, while Nissan has scaled back production schedules. Both companies rely heavily on Gulf aluminium, which is not easily replaceable due to its specialised, low-emission production processes. Suppliers to BMW and Mercedes-Benz are also facing mounting disruptions.
Efforts to bypass Hormuz through alternative routes have proven inadequate. Gulf smelters are transporting materials by land to ports outside the strait, but these routes are slower, more expensive and incapable of sustaining previous export volumes. At the same time, shipping companies have withdrawn vessels from the region, and rerouted journeys around Africa have added weeks to delivery timelines, crippling time-sensitive automotive supply chains.
The crisis extends beyond aluminium. Sulfur, a key component in EV battery production, is also caught in the disruption, threatening to drive up battery costs and further complicate manufacturing. Rising aluminium prices, already at multi-year highs, are adding additional financial pressure on automakers.
The situation highlights a deeper structural flaw in the EV transition. Supply chains designed for efficiency under stable geopolitical conditions are now collapsing under stress. Materials critical to reducing dependence on fossil fuels are themselves dependent on fragile global trade routes vulnerable to conflict.
Even as higher oil prices could make EVs more attractive to consumers, the industry faces a paradox: vehicles meant to replace oil dependency are now constrained by the same geopolitical forces. As the blockade continues, the vision of a smooth transition to electric mobility is increasingly at risk, with supply insecurity threatening to slow the pace of global decarbonisation.