While battery cell manufacturing capacity has expanded, raw material refining constraints present immediate production challenges for electric vehicle manufacturers.
Lithium Refining Bottlenecks
Capital expenditure in processing facilities continues to lag behind mining output, causing localized shortfalls in high-purity battery-grade lithium hydroxide.
Vertical Integration Strategies
Automakers are entering direct off-take agreements and joint ventures with refiners to secure critical mineral inputs and stabilize production guidance.