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Ranked: Top 25 Nations Producing Battery Metals for the EV Supply Chain

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How to Use: Click the arrows on the left/right to navigate between current and projected rankings.

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The Role of Mining in the EV Battery Supply Chain

Batteries are one of the most important and expensive components of electric vehicles (EVs). The vast majority of EVs use lithium-ion (Li-ion) batteries, which harness the properties of minerals and elements to power the vehicles. But batteries do not grow on trees—the raw materials for them, known as “battery metals”, have to be mined and refined.

The above graphic uses data from BloombergNEF to rank the top 25 countries producing the raw materials for Li-ion batteries.

Battery Metals: The Critical Raw Materials for EV Batteries

The raw materials that batteries use can differ depending on their chemical compositions. However, there are five battery minerals that are considered critical for Li-ion batteries:

  • Cobalt
  • Graphite
  • Lithium
  • Manganese
  • Nickel

Miners extract these minerals from economically viable deposits and refine them from their raw forms into high-quality products and chemicals for EV batteries.

The Top 25 Nations Supplying Battery Metals

Some countries are more crucial than others to the battery metal supply chain. BloombergNEF ranked the top 25 countries according to the following methodology:

  1. First, they tallied the mineral resources, mining capacity, and refining capacity in 2020 and projected commissioned capacity by 2025 for the five key metals listed above in each country.
  2. Then, to determine the overall score for each country, BloombergNEF categorized the countries’ capacities into five bands. Countries in the lowest band received a score of 1 and those in the highest band received a score of 5.
  3. The overall score is the result of averaging the scores across the five categories for each country.

Now that we have a better understanding of how the rankings work, here are the top 25 nations for raw materials in the Li-ion supply chain in 2020 and 2025.

Country2020 Rank2025 Projected RankChange in Rank
China110
Australia220
Brazil37-4
Canada43+1
South Africa54+1
Chile64+2
Indonesia74+3
Democratic Republic of Congo (DRC)810-2
India913-4
Philippines913-4
Finland1110+1
Japan128+4
Argentina128+4
Mexico12120
U.S.1513+2
Vietnam1617-1
South Korea1716+1
Germany1722-5
U.K.17170
France17170
Czech Republic17170
Sweden2217+5
Poland22220
Hungary22220
Thailand22220

China’s dominance in the rankings shows that refining capacity is just as important, if not more, as access to raw materials and mining capacity.

China does not boast an abundance of battery metal deposits but ranks first largely due to its control over 80% of global raw material refining capacity. Additionally, China is the world’s largest producer of graphite, the primary anode material for Li-ion batteries.

Australia comes in at number two due to its massive lithium production capacity and nickel reserves. Following Australia is Brazil, one of the world’s top 10 producers of graphite, nickel, manganese, and lithium.

On the other end of the spectrum, Poland, Hungary, Sweden, and Thailand are tied at rank 22. However, it’s important to note that these are among the top 10 countries for cell and component manufacturing—the next step in the lithium-ion battery supply chain.

Countries on the Rise

Sweden’s rank rises five places between 2020 and 2025p, largely due to an expected increase in its mining capacity with nickel and graphite projects in the pipeline. Argentina is projected to jump up to eighth place thanks to its massive lithium resources and multiple mining projects in advanced stages.

Moreover, Japan is projected to move up four places with its first lithium hydroxide refining plant under construction. In addition, Japanese miner Sumitomo Metal Mining is planning to double battery metal production by 2028.

Although China will likely maintain its dominance for the foreseeable future, other countries are ramping up their mining and refining capacities. Given the increasing importance of EVs, it will be interesting to see how the battery metals supply chain evolves going forward.

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Electrification

Visualized: What is the Cost of Electric Vehicle Batteries?

The cost of electric vehicle batteries can vary based on size and chemical composition. Here are the battery costs of six popular EV models.

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The Cost of EV's Battery

What is the Cost of Electric Vehicle Batteries?

The cost of an electric vehicle (EV) battery pack can vary depending on composition and chemistry.

In this graphic, we use data from Benchmark Minerals Intelligence to showcase the different costs of battery cells on popular electric vehicles.

Size Matters

Some EV owners are taken by surprise when they discover the cost of replacing their batteries.

Depending on the brand and model of the vehicle, the cost of a new lithium-ion battery pack might be as high as $25,000:

VehicleBattery TypeBattery CapacityBattery CostTotal Cost of EV
2025 Cadillac Escalade IQNickel Cobalt Manganese Aluminum (NCMA)200 kWh$22,540$130,000
2023 Tesla Model SNickel Cobalt Aluminum (NCA)100 kWh$12,030$88,490
2025 RAM 1500 REVNickel Cobalt Manganese (NCM)229 kWh$25,853$81,000
2022 Rivian Delivery VanLithium Iron phosphate (LFP)135 kWh$13,298$52,690
2023 Ford MustangLithium Iron Phosphate (LFP)70 kWh$6,895$43,179
2023 VW ID.4Nickel Cobalt Manganese (NCM622)62 kWh$8,730$37,250

The price of an EV battery pack can be shaped by various factors such as raw material costs, production expenses, packaging complexities, and supply chain stability. One of the main factors is chemical composition.

Graphite is the standard material used for the anodes in most lithium-ion batteries.

However, it is the mineral composition of the cathode that usually changes. It includes lithium and other minerals such as nickel, manganese, cobalt, or iron. This specific composition is pivotal in establishing the battery’s capacity, power, safety, lifespan, cost, and overall performance.

Lithium nickel cobalt aluminum oxide (NCA) battery cells have an average price of $120.3 per kilowatt-hour (kWh), while lithium nickel cobalt manganese oxide (NCM) has a slightly lower price point at $112.7 per kWh. Both contain significant nickel proportions, increasing the battery’s energy density and allowing for longer range.

At a lower cost are lithium iron phosphate (LFP) batteries, which are cheaper to make than cobalt and nickel-based variants. LFP battery cells have an average price of $98.5 per kWh. However, they offer less specific energy and are more suitable for standard- or short-range EVs.

Which Battery Dominates the EV Market?

In 2021, the battery market was dominated by NCM batteries, with 58% of the market share, followed by LFP and NCA, holding 21% each.

Looking ahead to 2026, the market share of LFP is predicted to nearly double, reaching 38%.

NCM is anticipated to constitute 45% of the market and NCA is expected to decline to 7%.

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How Clean is the Nickel and Lithium in a Battery?

This graphic from Wood Mackenzie shows how nickel and lithium mining can significantly impact the environment, depending on the processes used.

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How clean is the lithium and nickel in battery

How Clean is the Nickel and Lithium in a Battery?

The production of lithium (Li) and nickel (Ni), two key raw materials for batteries, can produce vastly different emissions profiles.

This graphic from Wood Mackenzie shows how nickel and lithium mining can significantly impact the environment, depending on the processes used for extraction.

Nickel Emissions Per Extraction Process

Nickel is a crucial metal in modern infrastructure and technology, with major uses in stainless steel and alloys. Nickel’s electrical conductivity also makes it ideal for facilitating current flow within battery cells.

Today, there are two major methods of nickel mining:

  • From laterite deposits, which are predominantly found in tropical regions. This involves open-pit mining, where large amounts of soil and overburden need to be removed to access the nickel-rich ore.

  • From sulphide ores, which involves underground or open-pit mining of ore deposits containing nickel sulphide minerals.

Although nickel laterites make up 70% of the world’s nickel reserves, magmatic sulphide deposits produced 60% of the world’s nickel over the last 60 years.

Compared to laterite extraction, sulphide mining typically emits fewer tonnes of CO2 per tonne of nickel equivalent as it involves less soil disturbance and has a smaller physical footprint:

Ore TypeProcessProductTonnes of CO2 per tonne of Ni equivalent
SulphidesElectric / Flash SmeltingRefined Ni / Matte6
LateriteHigh Pressure Acid Leach (HPAL)Refined Ni / Mixed Sulpide Precipitate / Mixed Hydroxide Precipitate13.7
LateriteBlast Furnace / RKEFNickel Pig Iron / Matte45.1

Nickel extraction from laterites can impose significant environmental impacts, such as deforestation, habitat destruction, and soil erosion.

Additionally, laterite ores often contain high levels of moisture, requiring energy-intensive drying processes to prepare them for further extraction. After extraction, the smelting of laterites requires a significant amount of energy, which is largely sourced from fossil fuels.

Although sulphide mining is cleaner, it poses other environmental challenges. The extraction and processing of sulphide ores can release sulphur compounds and heavy metals into the environment, potentially leading to acid mine drainage and contamination of water sources if not managed properly.

In addition, nickel sulphides are typically more expensive to mine due to their hard rock nature.

Lithium Emissions Per Extraction Process

Lithium is the major ingredient in rechargeable batteries found in phones, hybrid cars, electric bikes, and grid-scale storage systems. 

Today, there are two major methods of lithium extraction:

  • From brine, pumping lithium-rich brine from underground aquifers into evaporation ponds, where solar energy evaporates the water and concentrates the lithium content. The concentrated brine is then further processed to extract lithium carbonate or hydroxide.

  • Hard rock mining, or extracting lithium from mineral ores (primarily spodumene) found in pegmatite deposits. Australia, the world’s leading producer of lithium (46.9%), extracts lithium directly from hard rock.

Brine extraction is typically employed in countries with salt flats, such as Chile, Argentina, and China. It is generally considered a lower-cost method, but it can have environmental impacts such as water usage, potential contamination of local water sources, and alteration of ecosystems.

The process, however, emits fewer tonnes of CO2 per tonne of lithium-carbonate-equivalent (LCE) than mining:

SourceOre TypeProcessTonnes of CO2
per tonne of LCE
MineralSpodumeneMine9
Mineral Petalite, lepidolite and othersMine 8
BrineN/AExtraction/Evaporation3

Mining involves drilling, blasting, and crushing the ore, followed by flotation to separate lithium-bearing minerals from other minerals. This type of extraction can have environmental impacts such as land disturbance, energy consumption, and the generation of waste rock and tailings.

Sustainable Production of Lithium and Nickel

Environmentally responsible practices in the extraction and processing of nickel and lithium are essential to ensure the sustainability of the battery supply chain.

This includes implementing stringent environmental regulations, promoting energy efficiency, reducing water consumption, and exploring cleaner technologies. Continued research and development efforts focused on improving extraction methods and minimizing environmental impacts are crucial.

Sign up to Wood Mackenzie’s Inside Track to learn more about the impact of an accelerated energy transition on mining and metals.

 

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