CATL warns mining, not processing, is now the battery supply bottleneck

The world’s largest EV battery maker, Contemporary Amperex Technology Co. Ltd. (CATL), has identified mining—not processing—as the critical bottleneck in securing raw materials for electric-vehicle batteries. Vice President Jiang Li told Bloomberg that CATL is prioritizing upstream investments to lock in supplies and cut costs. “Processing is not the bottleneck, but mining is,” Li said, adding that the company wants to “build our cost advantage with our upstream capabilities.” China dominates global refining of battery minerals, and automakers like Ford Motor Co. have previously flagged processing as the bigger constraint. But surging prices and supply volatility are pushing battery manufacturers to focus on extraction instead. CATL is expanding mining projects at home and abroad for lithium, phosphate and cobalt, though its flagship lithium mine in Jiangxi province has faced disruptions since August, contributing to lithium’s price swings. To hedge against lithium spikes, CATL is accelerating sodium-ion battery development, calling it an “alternative risk-management strategy.” “If the price of lithium goes up, then we can make more sodium-ion batteries,” Li said. CATL has also appointed Chen Jinghe, founder of China’s largest metals miner, as an adviser to help steer its mining push. The shift underscores how rapidly the battery-supply chain is tightening: even China, which refines roughly 80% of the world’s battery-grade lithium, still relies on ore imports and now sees mining as the real choke point. Industry watchers warn that without more mine capacity, price volatility will persist, forcing battery makers to diversify technologies and suppliers.