Strengthening Supply: Original Equipment Manufacturers Expand Battery Production Investments

In the rapidly evolving world of electric vehicles (EVs) and batteries, major players in the industry are adopting an integrated approach to ensure a steady supply of critical raw materials. This approach encompasses various activities such as second life, recycling, and flow with extraction, processing, and manufacturing.

Manufacturers like BMW, Tesla, and General Motors (GM) are taking bold steps to secure their raw material supply. BMW and Tesla have announced plans to operate their own mines, while GM has invested a significant $650 million in the world's third largest lithium mine.

Strategic agreements with specialized companies for raw material supply are becoming commonplace. For instance, Stellantis, Northvolt, CATL, SK Innovation, Envision AESC, and Panasonic are investing in recycling activities and programs to supplement their supply capabilities.

Other automotive Original Equipment Manufacturers (OEMs) besides GM, BMW, and Tesla, are also making efforts to ensure supply and gain control. This includes strategic partnerships to secure large agreements and investments in raw material extraction and processing.

The focus on securing raw material supply is not limited to the automotive sector. Germany and Canada have recently entered a new pact focusing on investments and cooperation in the extraction and processing of critical raw materials such as lithium, rare earths, copper, tungsten, gallium, germanium, and nickel. This pact aims to secure the energy storage production chain and reduce dependency on China.

As the demand for raw materials in the industry is expected to exceed supply by 2030, companies are expanding their operations upwards and downwards, leading to competition for positions and a 360° vision of the industry.

Mercedes, Renault, Audi, and Nissan are also working on giving second life to batteries, further emphasizing the industry's commitment to sustainability and circularity.

New European regulations are emphasizing sustainability and circularity in the EV and battery industry. This shift towards a more sustainable future is not just a trend, but a necessity for the long-term success of the industry.