The Cell Supply Chain Upstream to Downstream
1. Raw materials — lithium, nickel, cobalt, graphite
Chinese firms dominate processing but not mining:
- Albemarle (ALB): largest Western lithium producer
- Sociedad Química y Minera de Chile (SQM)
- Freeport-McMoRan (FCX): copper (every EV needs 3-4x more copper than ICE)
2. Refining and cathode / anode materials
Mostly Chinese, Korean, Japanese:
- Umicore (UMI.BR): Belgian cathode materials
- POSCO (PKX): Korean materials
- Mitsubishi Chemical, Showa Denko: graphite and anode
3. Cell manufacturing
- CATL (300750.SZ): world leader, ~35% market share
- BYD (1211.HK): #2 globally, vertically integrated with EVs
- LG Energy Solution (373220.KS)
- Samsung SDI (006400.KS)
- Panasonic (6752.T): key Tesla partner historically
4. Pack assembly
OEMs increasingly build packs in-house:
- Tesla at Gigafactories
- GM / Ford / Stellantis via Ultium, BlueOval joint ventures
- BYD vertically integrated
5. Recycling
End-of-life recovery is becoming strategic:
- Redwood Materials (private, JB Straubel led)
- Li-Cycle (LICY)
- Ascend Elements (private)
Chemistry Trends
LFP vs NMC
- LFP (lithium-iron-phosphate): cheaper, safer, longer cycle life; lower energy density. Winning in China / entry-level EVs and energy storage.
- NMC (nickel-manganese-cobalt): higher energy density, more expensive, cobalt supply risk. Used in premium EVs.
Solid-state (future)
- QuantumScape (QS), Solid Power (SLDP) are publicly-traded solid-state players but still pre-commercial.
Geographic Concentration Risks
China processes ~70% of lithium, ~60% of cobalt, ~80% of graphite. US IRA incentives push domestic / friendly-ally sourcing. The "critical minerals" list determines which projects qualify for subsidies.
How to Monitor Battery Chain News
- [/topic/ev-autos](/topic/ev-autos)
- [/topic/semiconductors](/topic/semiconductors) for chip overlap
- Custom Monitor: battery, lithium, cathode, LFP, CATL, Redwood
Key Takeaways
- Raw materials concentrated in a few countries
- Cell manufacturing dominated by 5-6 Asian players
- Recycling becoming strategic for long-term supply
- LFP winning in China and entry-level; NMC still dominant premium
See [/stocks/TSLA](/stocks/TSLA), [/stocks/FCX](/stocks/FCX), [/stocks/ALB](/stocks/ALB).