Major announcements in recent months have focused on securing large agreements and investments in raw material extraction and processing.These materials are critical to the industry and by 2030, demand growth is expected to exceed supply.
Large automotive OEMs are taking bold steps to ensure supply and gain control, such as GM’s 650 million dollar investment in the world’s third largest lithium mine. Other companies, including BMW and Tesla, have announced plans to operate their own mines.
Strategic agreements with specialized companies for raw material supply are also being formed to supplement supply capabilities. Stellantis is banking on a more comprehensive strategy that includes raw material extraction and processing. Cell manufacturers such as SK On and Panasonic are also securing cathode material production.
Manufacturers of electric vehicles and batteries are moving upstream in the value chain, integrating activities such as second life, recycling, and flow with extraction, processing, and manufacturing. This is due to new European regulations emphasizing sustainability and circularity.
Companies such as Northvolt, CATL, SK Innovation, Envision AESC, and Panasonic are investing in recycling activities and programs. Car manufacturers, such as Mercedes, Renault, Audi, and Nissan, are also working on giving second use to batteries. These operations are expanding upwards and downwards, leading to competition for positions and 360° vision of the industry.
In short, large Battery and Automotive OEMs are making investments to secure the value chain and gain control of critical materials. Raw material extraction and processing investments are being made, strategic agreements with specialized companies for raw material supply are being formed, and manufacturers of electric vehicles and batteries are integrating activities such as second life, recycling, and flow with extraction, processing, and manufacturing due to new regulations. Companies are also investing in recycling activities and programs and car manufacturers are working on giving second use to batteries.
Source: CIC energiGUNE
