Dear battery enthusiast,
Welcome to Battery Associates’ February newsletter. We have summarised some of the month’s most relevant news, highlighting recent developments and updates in the battery space.
B.A's Battery Newsletter:
Battery Industry Highlights
BA Exclusive summary
Company Member News
Battery Insiders Podcast
Battery Associates’ Events & Updates
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Battery Industry Highlights
In this section, we summarise relevant battery news from the past month.
25 February, 2025, The Democratic Republic of Congo (DRC) has announced a four-month suspension of cobalt exports to address oversupply and plummeting prices in the international market. This significant measure aims to stabilise the depressed cobalt market, where prices have fallen to historic lows of $9.5 per pound. The suspension started on February 22 and will be reviewed in three months.
B.A Commentary: The DRC's suspension of cobalt exports underscores the volatility in the critical mineral markets. While aiming to stabilise prices, this move may disrupt global supply chains, particularly for electric vehicle (EV) manufacturers reliant on cobalt for NMC batteries. Companies may accelerate the shift toward cobalt-free battery technologies, such as lithium iron phosphate (LFP) batteries, to mitigate supply risks. Diversifying supply sources and investing in alternative chemistries are crucial strategies for stakeholders to navigate such market fluctuations.
27 February, 2025, Japan's Idemitsu Kosan plans to construct a lithium sulphide plant at its Chiba refinery, near Tokyo, to support the development of all-solid-state batteries for EVs. This initiative, in partnership with Toyota, involves a ¥21.3 billion ($143 million USD) investment, with the plant expected to be operational by June 2027. The facility will produce enough lithium sulphide annually to supply 50,000-60,000 EVs.
B.A Commentary: Idemitsu's investment in lithium sulphide production signifies a strategic move to advance solid-state battery technology, which promises longer ranges and shorter charging times for EVs. Toyota, a key partner in this initiative, aims for commercial SSB deployment by 2027, targeting a range of 1,200 km and 10-minute charging.
24 February, 2025, Volkswagen Group and Contemporary Amperex Technology Co. Limited (CATL) have signed a statement of intent to collaborate on the development of new lithium ion batteries in China. This partnership aims to enhance product development for electrified vehicles and extends to areas such as battery recycling and vehicle-to-grid technology.
B.A Commentary: Volkswagen's collaboration with CATL to develop lithium ion batteries tailored for the Chinese market signifies a strategic move to enhance its EV offerings. By partnering with the world's largest battery manufacturer, Volkswagen aims to create high-performance and cost-effective batteries, potentially accelerating EV adoption in China. Expanding into battery recycling and vehicle-to-grid technology further demonstrates a commitment to sustainability and innovation.
28 February, 2025, the European Commission is set to propose measures to increase EV demand within the EU and introduce local content requirements for battery production. The proposal, to be unveiled on 5 March, aims to support EU automakers in electrifying their fleets and competing globally. Strategies include toll exemptions for zero-emission heavy vehicles and incentives for EV purchases.
B.A Commentary: The European Commission's initiative addresses critical challenges in the EV market, including supply chain vulnerabilities and competition from Chinese and U.S. manufacturers. Implementing battery content requirements from local sources could stimulate domestic production, enhancing the EU's strategic autonomy in the automotive sector. However, success hinges on effectively expanding charging infrastructure and offering consumer incentives to reverse the recent decline in EV sales. Balancing these measures with environmental goals and industrial competitiveness will be vital for the EU's sustainable transition to electric mobility.
3 February, 2025, the Philippine Senate approved a bill proposing a ban on raw mineral exports, including nickel ore, to develop domestic processing industries. The ban would take effect five years after enactment, allowing miners time to establish local processing facilities. the Philippines is the world's second-largest nickel ore producer, supplying primarily to China. This move mirrors Indonesia's 2020 export ban, which increased its nickel export value from $1.1 billion in 2014 to $20.9 billion in 2021.
B.A Commentary: The proposed export ban aims to enhance the Philippines' value-added processing capabilities, potentially increasing economic returns and job creation. However, industry groups express concerns about infrastructure readiness and regulatory challenges hindering the establishment of processing facilities. They warn that an export ban without addressing these issues could lead to mine closures, unemployment, and reduced government revenues. A comprehensive strategy, including investment in infrastructure and policy reforms, is essential to ensure the success of this initiative.
BA Exclusive Summary
Battery Metal Price Crash Reshapes Global Cell Manufacturing Landscape
The global battery supply chain is undergoing a drastic shift, with key lithium ion battery metals, including lithium, cobalt, nickel, manganese, and copper, undergoing historic price crashes. Lithium carbonate prices have plunged by nearly 90% since their peak in 2022, and are currently trading at $10.56-$11.33/kg, compared to $19.91-$21.32/kg in 2023. For high performance EV batteries based on nickel manganese cobalt (NMC) cathode chemistries, these trends are particularly disruptive.
Cobalt has hit its lowest price in over a decade at $9.50 per pound, driven by an oversupply from the Democratic Republic of Congo, forcing supply chain disruptions. Nickel has fallen by 40%, from $25,000 per tonne to $16,000 per tonne. This is largely due to an Indonesian supply glut, leading Western producers to suspend operations. Meanwhile, prices for copper (for current collectors) have declined to $9,080 per metric ton, driven by the weak global economy and reduced Chinese demand. These trends have severely impacted battery raw material suppliers, leading to mine shutdowns, financial losses, and company bankruptcies. For example, last year, Jervois Global, a major cobalt supplier, collapsed under mounting debts after cobalt’s price collapse, while Glencore halted nickel operations in New Caledonia due to unsustainable costs.
The volatility of metal prices associated with battery raw materials has raised concerns over long-term supply chain sustainability. While cheap metals have facilitated manufacturing and EV adoption, prolonged price slumps could force numerous mining operations to shut down. The International Energy Agency reports that the recent surge in battery material production has led to a short-term inventory surplus, causing prices to fall. This oversupply masks potential long-term supply constraints, future shortages and price increases. Therefore, while the present scenario favors manufacturers, the industry must remain vigilant and prepare for possible disruptive supply-side challenges.
Company Member News
Thermo Fisher Scientific
As the demand for sustainable battery manufacturing increases, the need for efficient recycling methods becomes increasingly critical.
Our new case study provides insights into how a prominent U.S. battery recycling company was able to efficiently recover essential battery elements such as cobalt (Co), lithium (Li) and manganese (Mn) from the cathode active materials of expired or used lithium-ion batteries with process Raman analysis, while optimizing their recycling process. Read more here.
BatteryMBA May 2025 Cohort
BatteryMBA’s next cohort starts on 5th May 2025, which will offer a combination of in-depth technical and business knowledge on a range of battery topics aligned with the sector's dynamic growth.
BatteryMBA alumni have affiliations with Tesla, Farasis Energy, JLR, Airbus, Hitachi High-Tech Europe, Schlumberger, Bertrandt Group, AMTE Power, the University of Birmingham, the European Parliament, and many others.
The course consists of an exciting battery case study track (with case studies from leading business schools). If you have any queries, reach out to us via email at info@battery.mba. Need-based scholarships and group discounts are available.
Battery Insiders Podcast
Battery Associates runs a podcast called Battery Insiders, which covers the role of batteries for sustainable development and battery-relevant topics featuring a range of battery experts and enthusiasts.
Talk on: Trade, policy & industry growth in Europe's battery industry
Speaker: Julia Poliscanova, Senior Director, T&E
Session Summary: In this episode of the Battery Insiders podcast, Simon Engelke speaks with Julia Poliscanova about the current state and future of the battery industry in Europe. They discuss the geopolitical dynamics affecting battery production, the need for a European equivalent to the US Inflation Reduction Act, and the challenges faced by European gigafactories. The conversation also covers energy costs, the UK's role post-Brexit, the Critical Materials Act, and the importance of diversifying supply chains. Julia emphasizes the need for better policies to support local production and technology transfer, as well as the potential for Europe to become self-sufficient in lithium by 2030. The episode concludes with a discussion on the importance of alliances and partnerships in the global battery market.
Battery Associates services
Battery Associates offers consultancy, innovation, and education services on a wide range of topics. Please get in touch if you're interested in any of our services!
About Battery Associates
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