About battery metals
Editorial · sourcedWhat are battery metals?
"Battery metals" is the market term for the five raw materials that go into the active materials of a lithium-ion battery cell: lithium (electrolyte salt + cathode), cobalt (cathode), nickel (cathode), graphite (anode) and manganese (cathode, in some chemistries). The grouping was formalised by the International Energy Agency (IEA) in its 2021 report "The Role of Critical Minerals in Clean Energy Transitions" and by Benchmark Mineral Intelligence. The EU Critical Raw Materials Act 2023 lists lithium, cobalt, nickel, graphite and manganese in the higher-priority "Strategic Raw Materials" tier specifically because of battery demand.
How battery metals are priced
Each battery metal has a different pricing reference, reflecting the immaturity of futures markets relative to base metals:
- Lithium — Fastmarkets assessments for lithium carbonate (battery grade) and lithium hydroxide, plus GFEX (Guangzhou) lithium-carbonate futures launched 2023.
- Cobalt — LME cobalt physical contract + Fastmarkets standard-grade and battery-grade assessments.
- Nickel — LME nickel for primary metal; Fastmarkets nickel sulphate (battery grade) for the chemical form used in cathodes.
- Graphite — no futures; Fastmarkets spherical natural graphite and synthetic graphite anode-material assessments.
- Manganese — LME manganese (ferromanganese) for steel grade; Fastmarkets electrolytic manganese metal and high-purity manganese sulphate for battery grade.
Where battery metals come from
Supply concentration in battery metals is the highest of any commodity class. Per IEA Critical Minerals Market Review 2023 and USGS MCS 2026: cobalt — DR Congo supplies ~75% of world mine output; lithium — Australia (~50%), Chile (~25%), China and Argentina (~20% combined); graphite — China supplies ~60% of natural graphite and ~90% of spherical graphite for battery anodes; nickel — Indonesia (~50%); manganese — South Africa (~35%) and Gabon (~20%). Refining is even more concentrated: China refines >70% of lithium, cobalt, manganese and graphite globally.
Who produces battery metals
The lithium chain is led by Albemarle, SQM, Ganfeng Lithium and Tianqi Lithium. Cobalt: Glencore (DRC) and CMOC (Tenke Fungurume / Kisanfu, DRC). Nickel: Norilsk Nickel, Vale, BHP Nickel West, plus Indonesian HPAL projects (Tsingshan, Lygend, Eramet). Graphite: Syrah Resources, BTR New Material, Shanghai Shanshan. Manganese: South32, Eramet.
What battery metals are used for
Outside batteries, each metal has its own legacy industrial uses — but battery demand is the swing factor driving prices through 2030+:
- Lithium — ≈85% of demand from batteries by 2025 (was <30% in 2015); remainder = glass/ceramics, lubricant greases.
- Cobalt — ≈70% of demand from batteries; legacy use = superalloys (jet engines).
- Nickel — ≈10-15% of total Ni demand from batteries; ≈70% from stainless steel; battery-grade nickel sulphate is the fastest-growing segment.
- Graphite — anode material is now ≈45% of natural graphite demand; remainder = refractories, electrodes for steel arc furnaces.
- Manganese — >90% of demand still goes to steel (ferromanganese); battery-grade high-purity manganese sulphate (HPMSM) is the new growth segment.
Key facts about battery metals supply
- All five battery metals are on both the USGS 2025 Critical Minerals list and the EU 2023 Strategic Raw Materials list.
- Battery cell chemistry mix is shifting: LFP (Li-Fe-PO₄, no Co or Ni) is now ≈40% of global EV cell production (CATL, BYD, Tesla Shanghai); NMC811 (high-Ni) remains dominant in premium-range EVs.
- Lithium spot prices fell >80% from the Nov 2022 peak through 2024 as supply caught up with demand — a complete cycle from boom to bust in 24 months.