The electric vehicle (EV) revolution is driving a seismic shift in the battery sector, with companies across the value chain scrambling to secure critical materials and boost profits. The days of siloed operations are numbered as miners, manufacturers, and OEMs embrace vertical integration, adopting “mine-to-market” strategies to gain control over the entire battery supply chain.
IDTechEx’s latest report, “Critical Battery Materials 2025–2035,” paints a clear picture: the battery demand tsunami is outpacing global mining output, and the scramble for lithium, nickel, copper, cobalt, and natural graphite is on. Companies are no longer content to sit back and watch as materials prices fluctuate and supply chains stretch thin. They’re rolling up their sleeves and getting involved in every step of the process.
Miners, traditionally content to dig and sell, are now eyeing downstream materials processing. Battery manufacturers and OEMs, meanwhile, are investing upstream, securing raw material supplies to insulate themselves from market volatility and ensure a steady flow of critical components. This isn’t just about securing supplies; it’s about capturing more value and improving profit margins.
Take Vulcan Energy Resources, for instance. They’re not just mining lithium; they’re producing battery-grade lithium from geothermal brines. Nouveau Monde Graphite isn’t just digging up graphite; they’re aiming to supply anode materials directly to EV makers. And in Indonesia, the world’s largest nickel producer, PT Merdeka Battery Materials is partnering with CATL and GEM Co. to expand integrated nickel operations, prioritizing EV-related processing over traditional uses like stainless steel.
The push for vertical integration is being driven by the growing need for supply chain security and localisation. Countries like Indonesia are increasingly favouring EV-related processing, seeing it as a strategic opportunity to boost their economies and reduce reliance on foreign suppliers. This trend is set to reshape the global battery landscape, with more countries and companies looking to control their own destinies.
But it’s not all smooth sailing. The report also explores the future role of deep-sea mining and assesses sustainability challenges, including the emission intensities of different processing routes. As companies rush to secure supplies, they’ll need to balance the need for speed with the need for sustainability. The environmental impact of these operations will be under the microscope, and companies that fail to tread lightly could face a backlash.
The shift towards vertical integration is more than just a trend; it’s a fundamental reshaping of the battery sector. As companies jostle for position, we can expect to see more partnerships, acquisitions, and investments as the battle for battery dominance heats up. The winners will be those that can navigate the complex web of supply chain dynamics, regulatory challenges, and sustainability concerns. The losers? Those that can’t adapt to this new reality. The battery sector is in for a wild ride, and it’s anyone’s guess who will come out on top. But one thing is clear: the days of business as usual are over. The future of the battery sector is vertical, and companies that don’t embrace this reality risk being left behind.