Supply Chain & Raw Materials
Page 314 of 518Directory profiles · Battery Business Directory
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Leading Battery Manufacturers Gain Influence Over Material Prices Example: Battery manufacturers involvement in lithium upstream supply
BATTERY MANUFACTURERS VERTICALLY INTEGRATING WHILE THE MIDSTREAM IS RELEGATED TO MIDDLE MEN To reduce the impact of price volatility on costs, and to gain an additional competitive edge, battery producers have sped up their vertical integration strategies by acquiring equity stakes in lithium, nickel, and cobalt resources and refineries. This trend has several implications:
More mined feedstock is removed from the open market and moved in-house, allowing battery manufacturers to control costs and secure supply.
Manufacturers have less reliance on the spot market, making spot prices less representative.
Cathode producers are increasingly relegated to a tolling role, with margins set by battery makers. Influencing power in the supply chain can shift throughout time, depending on where supply availability is tight compared to demand.
Source: Content & analysis provided courtesy of CRU Group (Distinguished Partner). For more information, visit https://www.crugroup.com.
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