As global demand for electric vehicles and lithium-ion batteries accelerates, players across the battery value chain are adopting vertically integrated “mine-to-market” strategies to ensure access to critical materials and improve profit margins.
According to IDTechEx’s new report, Critical Battery Materials 2025–2035, companies traditionally focused on mining or battery manufacturing are expanding beyond their core operations.
Miners are entering downstream materials processing, while battery manufacturers and OEMs are investing upstream – to secure raw material supplies like lithium, nickel, copper, cobalt and natural graphite.
IDTechEx notes that battery demand is outpacing global mining output, with lithium and cobalt already showing signs of supply strain.
Nickel is expected to follow.
The growing need for supply chain security and localisation is prompting countries such as Indonesia, the world’s largest nickel producer, to favour EV-related nickel processing over traditional uses like stainless steel.
Examples of vertical integration include Vulcan Energy Resources producing battery-grade lithium from geothermal brines, Nouveau Monde Graphite aiming to supply anode materials directly to EV makers and PT Merdeka Battery Materials partnering with CATL and GEM Co. to expand integrated nickel operations in Indonesia.
“Raw materials suppliers and miners are increasingly expanding their involvements in downstream materials processing for batteries,” the report states, highlighting opportunities to increase value creation and connect more directly with battery and EV manufacturers.
IDTechEx also explores the future role of deep-sea mining and assesses sustainability challenges, including the emission intensities of different processing routes.
