Global automotive original equipment manufacturers (OEMs) are fundamentally restructuring procurement strategies for critical battery minerals following extended market volatility. Direct off-take agreements with mining operators have increased by 18% over the past six months as carmakers attempt to lock in predictable production costs for mid-tier electric vehicles.
Localization of Cathode Manufacturing
To qualify for international trade subsidies and reduce geopolitical supply risks, OEMs are shifting processing capacity closer to assembly plants. North American and European facilities currently account for 35% of planned global processing additions through 2026.