Critical Materials


Batteries are the backbone of electrification, linking raw materials to electric vehicles, energy storage systems (BESS), and recycling. Their supply chain is complex, global, and vulnerable to bottlenecks. Most of a battery’s cost is in its materials.

Lifecycle Stages

From resource extraction to end-of-life recovery, each stage has its own actors and risks:

  • Upstream: Mining & brine extraction of lithium, nickel, cobalt, manganese, graphite.
  • Midstream: Refining and conversion into battery-grade chemicals.
  • Active materials: Cathode (NMC, LFP, LMFP) and anode (graphite, silicon blends).
  • Cell manufacturing: Electrode making, cell assembly, formation & aging.
  • Modules & packs: Mechanical assembly, BMS, and thermal systems.
  • Integration: Installation into vehicles, fleets, and grid storage.
  • Use phase: Operation, charging, degradation management.
  • End-of-life: Second life and recycling to recover critical materials.

Key Chemistries

Different use cases demand different chemistries:

  • LFP - Safe, low-cost, long cycle life (buses, mass-market EVs, BESS).
  • LMFP - Emerging LFP upgrade with higher energy density.
  • NMC/NCA - Higher energy density, used in premium EVs.
  • LTO - Ultra-fast charge, long cycle life, but low energy density.
  • Na-ion - Low-cost, Li-free option for 2W/3W vehicles and stationary storage.
  • Silicon-rich anodes - Higher capacity, still battling swelling and fade.

Formats & Architectures

Cell and pack design strongly affect performance and cost:

  • Cylindrical - Mature automation, good thermal handling (Tesla 4680).
  • Prismatic - High volumetric efficiency (popular in China/Europe).
  • Pouch - Flexible, but needs compression systems.
  • Cell-to-Pack (CTP) - Removes module layer for efficiency.
  • Cell-to-Chassis (CTC) - Structural integration for next-gen EVs.

Manufacturing Process Highlights

Critical steps that determine yield and cost:

  • Mixing & coating - Control slurry uniformity and coat weight.
  • Drying & calendaring - Moisture removal and density control.
  • Stacking/winding - Electrode alignment and weld quality.
  • Dry rooms & electrolyte filling - Strict humidity control.
  • Formation & aging - Time- and energy-intensive bottleneck.
  • Grading & QC - Sorts cells by capacity and resistance.

Reshoring & Policy Levers

US/EU supply chains are being reshaped by incentives:

  • IRA/USMCA - Content thresholds for minerals and manufacturing.
  • Battery passport rules (EU) - Traceability and lifecycle CO2 reporting.
  • Regional suppliers - CAM plants, separator facilities, foil mills emerging.
  • Workforce - Need for line technicians, engineers, and QC specialists. Few operators trained on gigafactory-scale lines.

Circularity & Sustainability

Designing batteries for reuse and recycling:

  • Second life - EV packs repurposed for stationary storage.
  • Recycling - Hydromet, pyro, and direct methods recovering Li, Ni, Co, graphite.
  • Design for recycling - Easy disassembly, clear labeling, standardized formats.
  • Metrics - Recovery %, CO2e per kg recovered, recycled content in new cells.



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