What happened: To acquire essential battery minerals like lithium, nickel, and graphite, companies like General Motors, Ford, Stellantis, and Tesla are all investing in mining projects. The switch to electric vehicles (EVs) drives this previously unheard-of alliance between the mining and automotive industries. GM first miscalculated the marketability of minerals, but it now promises to buy the extracted materials. Automakers are signing agreements for lithium projects in the U.S., which now supplies only a tiny portion of the world market.
Why it matters: The auto and mining industries have joined forces to ensure a consistent supply of battery materials for the quickly expanding EV market. This partnership indicates a change in how manufacturers approach obtaining raw materials and emphasizes the importance of having these resources in place for electric mobility. These minerals are necessary to make EV batteries, which would limit the growth of the EV sector. In 2022, SQM of Chile had the most significant global lithium production market share of 20%, with Albemarle of the U.S. in second place at 16%
Where to see the impact: To guarantee a consistent supply of battery minerals for the continued expansion of the EV industry, automakers are increasingly engaging in mining operations, such as GM's joint-development project with Lithium Americas in Nevada and Ford's equity investment in an Indonesian nickel mine. Mining projects all across the world have already benefited from these investments.