Global automakers have committed over $45 billion in direct joint ventures with battery material processors over the past 18 months. The shift marks a departure from traditional tier-1 supplier procurement models toward vertical integration.
Direct Mining Partnerships Reduce Intermediaries
By contracting directly with mining operators and refining facilities, manufacturers aim to stabilize cell production costs. Analysts estimate this direct procurement approach saves automakers between $8 and $12 per kilowatt-hour at the pack level.