ey-battery-minerals-risks-opportunities

Top three risks and opportunities facing the battery minerals sector

The battery minerals (lithium, nickel and cobalt) sector is going to be extremely volatile as it scales production to meet surging demand from the energy transition for use in energy storage and electric vehicle batteries.


The Battery Minerals Risks and Opportunities 2025 report highlights the volatility in the battery minerals sector, driven by surging demand for lithium, nickel and cobalt due to the energy transition. Mining companies face challenges such as balancing capital discipline with growth, overcoming complex barriers for new projects and navigating rising government intervention. The new US administration's withdrawal from the Paris Agreement and potential reversal of climate incentives could lower battery mineral demand. Trade tariffs and reciprocal measures are likely to affect supply and pricing, especially with China's dominance in refining these metals.

Despite low commodity prices and near-term oversupply, the robust demand outlook is driving investment in mining and processing. Governments are incentivising domestic processing to support self-sufficiency. Strategic international partnerships are being formed to maintain a consistent supply of battery minerals. Miners are adopting new business models and technologies to enhance extraction efficiency and sustainability. The sector is also focusing on achieving supply chain resiliency and carbon-efficient supply chains.

The long-term outlook remains positive as the energy transition accelerates, positioning the battery minerals sector as a key player in the global move towards a greener future.

Under the IEA's Net Zero Emissions Scenario, the mining industry must invest at least $792 billion by 2050 to satisfy rising demand for battery minerals. 

Discover more about Top three risks and opportunities facing the battery minerals sector

About this article

Authors

You are visiting EY aus-nzl (en)
aus-nzl en