Follow India Renewable Energy News on WhatsApp for exclusive updates on clean energy news and insights
IEA Report: China Tightens Grip on Battery Metals Amid Global Supply Surge, Price Drops
May 28, 2025
China continued to dominate the global supply chain for battery metals and critical minerals in 2024, according to the IEA’s Global Critical Minerals Outlook 2025. The country remained the key supplier and refiner of lithium, cobalt, graphite, and rare earths, while also commanding over half of global demand for copper, nickel, and other key materials. Driven by electric vehicles (EVs), battery storage, and renewable energy, demand for critical minerals like lithium surged by 30%, with others such as nickel and cobalt growing 6–8%. However, robust supply growth—especially from China, Indonesia, and Africa—outpaced demand, leading to significant price drops. Lithium prices plunged over 80% since 2023, while cobalt, graphite, and nickel also declined sharply.
Despite efforts to diversify sources, China accounted for 70–95% of refined output for most battery metals. Its dominance extends to downstream activities, processing the majority of lithium, cobalt, and producing over 90% of battery-grade graphite and 98% of lithium-iron-phosphate (LFP) batteries. Indonesia also grew as a major nickel refiner, supplying 60% of mined nickel and processing 45% of it.
Battery pack prices hit a record low of $115/kWh in 2024—down 20% year-over-year—thanks to falling mineral costs, improved manufacturing capacity, and increased LFP battery adoption. China’s battery pack prices fell by 30%, enhancing its EV sector’s cost advantage.
The report also highlighted booming renewables, with global additions reaching 700 GW in 2024, led by China’s 340 GW solar expansion. EV sales exceeded 17 million units globally, with China leading at over 11 million. By 2040, demand for lithium, cobalt, graphite, and rare earths is expected to rise significantly, pushing the combined market value of key critical minerals to $500 billion—even amid supply concerns for copper and lithium.