The battery raw materials supply chain, once an overlooked area, has now become the lifeblood of the global electric vehicle (EV) industry. From lithium, cobalt, and nickel to aluminum, sodium, and other minerals, the supply chain for battery raw materials is rapidly evolving, bringing about both challenges and opportunities. With the expected surge in EV demand by 2025, ensuring the stable supply of these materials has become a key focus for investors and automakers. So, in this uncertain market, who will become the next “Tesla of lithium”?
The Globalization of the Battery Raw Materials Supply Chain
First, we must acknowledge a fact: battery raw materials, especially lithium, cobalt, and nickel, are no longer just part of the automotive industry; they’ve become essential for the global energy transition. From Europe and the U.S. to China and India, the demand for electric vehicles is driving a rapid expansion of these raw material markets. By 2025, with stronger new energy policies in both Europe and the U.S., the global market for battery raw materials is undergoing a profound transformation.
Lithium: The Market’s ‘Gold Mine’
Lithium, one of the most critical raw materials for batteries, has seen its price rise more than threefold in recent years. According to 2025 market data from Europe and the U.S., global demand for lithium is expected to increase by 200% in the next five years, especially in the electric vehicle and energy storage markets. Australia, Chile, and Argentina are the world’s largest lithium producers, but lithium extraction is not just a mineral issue—it also involves environmental concerns, technological innovation, and political risks.
For example, the U.S. Department of Energy recently approved a project to improve lithium extraction efficiency while ensuring environmental protection. By using direct lithium extraction (DLE) technology, it significantly reduces the environmental damage associated with traditional mining.
Cobalt and Nickel: Potential Supply Chain Risks
Cobalt, another essential raw material for batteries, is primarily produced in the Democratic Republic of Congo (DRC). However, the region’s political situation and labor conditions pose significant risks to the cobalt supply chain. By 2025, cobalt prices are expected to remain high, and global demand will continue to rise. Many European battery manufacturers and automakers have realized this risk and are diversifying their supply chains to mitigate it.
On the other hand, nickel—a key component of NCM (Nickel-Cobalt-Manganese) batteries—has attracted significant attention. Especially Indonesia, the world’s largest nickel producer, will become a significant player in the global battery supply chain over the next few years.
Emerging Markets in Battery Raw Materials
As the global electric vehicle market rises, Africa and Latin America have become key battlegrounds for battery raw materials. Especially in Africa, where rich resources have attracted international mining companies, though political and economic instability in some areas still pose risks for investors. For example, DRC, which holds the largest cobalt reserves, remains a source of concern due to regional conflicts and human rights issues, leading many Western companies to approach investments cautiously.
In the coming years, we may see more Latin American and African countries pursuing strategic cooperation and resource sharing to jointly develop the global battery materials supply chain.
Alternatives and Recycling in the Battery Raw Materials Industry
As battery technologies continue to evolve, the rise of alternative materials and recycling technologies has become a significant focus for the battery raw materials supply chain. Sodium-ion batteries and solid-state batteries are two of the most promising alternatives, reducing reliance on lithium and cobalt while offering advantages in cost and safety.
Sodium-ion Batteries on the Rise
Sodium-ion batteries, as an emerging technology, are gradually becoming a potential alternative to lithium batteries due to their more abundant material sources. According to a 2025 industry report, sodium-ion batteries are expected to capture 10-15% of the market share in low-cost electric vehicles and energy storage over the next three to five years. Although sodium-ion batteries still have room for improvement in energy density and charging speed, their enormous market potential has already attracted attention from numerous research institutions and companies.
Solid-State Batteries: The Game-Changer of the Future
Solid-state batteries represent another breakthrough technology that may lead future battery innovations. Using solid electrolytes, they theoretically offer higher energy density and improved safety. The commercialization of solid-state batteries is expected to accelerate in 2025, especially in the high-end electric vehicle market.
Battery Recycling: The Necessary Path for the New Energy Industry
Recycling technologies are becoming increasingly important in the battery industry. Efficiently recycling lithium, cobalt, and nickel can alleviate raw material shortages while significantly reducing environmental pollution. By 2025, the battery recycling market is expected to exceed $20 billion, and with continuous advancements in technologies by companies like Redwood Materials and Umicore, the battery recycling market will experience rapid growth in the coming years.
Who Will Be the Next Lithium Tesla?
Looking at the battery raw materials supply chain, the future “winners” won’t only be the mining companies controlling the resources. They’ll also be those companies leading in technological innovation, supply chain diversification, and environmental compliance. Companies like Ganfeng Lithium, BYD, and CATL have gradually established themselves as global leaders in the battery industry through technological research, strategic partnerships, and investments in environmental protection.
If you’re considering investing in this industry, it’s wise to keep an eye on global trends like new energy policies, technological innovations, and resource positioning.
What battery raw materials technologies or companies do you think will stand out in the next 5 to 10 years? Feel free to share your thoughts and opinions in the comments!
