Battery raw materials have become one of the most strategic resources of the 21st century as demand for lithium, cobalt, nickel, and graphite is rising rapidly. However, the global supply of these battery materials is highly concentrated in a few countries and controlled by globally operating companies. This creates geopolitical dependencies, supply risks, and growing competition for access to resources. Much like oil in the past, battery raw materials are becoming a key factor in global economic and political power.
Where Do Battery Raw Materials Come From?
A look at global production data by the United States Geological Survey shows that raw materials for batteries are very unevenly distributed across the world. Lithium production, for example, is dominated by only a few countries. Between 2020 and 2024, Australia accounted for around 45 percent of global lithium production, followed by Chile with about 24 percent and China with around 16 percent. Together, these three countries produced the vast majority of the world’s lithium. Forecasts by Fraunhofer ISI up to 2030 show that these countries will remain the most important producers, although their shares may decline slightly as new projects emerge in other regions.
The Cobalt and Nickel Dependency
Cobalt production is even more concentrated than lithium. The Democratic Republic of Congo alone accounted for around 74 percent of global cobalt production between 2020 and 2024, making the world highly dependent on a single country for this critical battery material. Indonesia and a few other countries follow far behind. Nickel production is slightly more diversified, but Indonesia still dominates the market with nearly half of global production and is expected to increase its share significantly by 2030.
Graphite and the Role of China
Natural graphite, which is essential for battery anodes, is heavily dominated by China. Between 2020 and 2024, China accounted for roughly three-quarters of global graphite production. Although other countries such as Mozambique, Madagascar, and Brazil also produce graphite, their shares are much smaller. By 2030, China is expected to remain the leading producer, although countries like Canada and Tanzania may increase their market share. This development could slightly diversify supply, but dependence on China will likely remain high.
Not Only Countries, But Companies
When analysing global raw material supply, it is important to look not only at producing countries but also at the companies operating the mines. For example, the US company Albemarle is headquartered in North Carolina but operates mines in Chile. Likewise, many cobalt mines in the Democratic Republic of Congo are owned by companies from China or Switzerland. The Swiss holding Glencore manages the Mutanda mine located in Lualaba region of DR Cong and also largely dominates the processing and global trading of the resource. This means that control over raw materials often lies with economically powerful countries rather than with the countries where the resources are located.
In Conclusion
The global race for battery raw materials is on. While countries such as the Democratic Republic of Congo, Australia, and Indonesia dominate raw material extraction, companies headquartered in China, Australia, and the United States control large parts of global production and supply chains. This concentration of corporate and geopolitical influence creates strategic dependencies and supply risks. At the same time, technological innovations in battery manufacturing such as solid-state batteries, sodium-ion batteries could significantly change future raw material demand. Therefore, technological progress will be just as important as resource availability in determining the future structure of the battery raw materials market.
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Further links:
- Global raw materials sources for lithium-ion batteries, Fraunhofer ISI
- Global Critical Minerals Outlook 2025, International Energy Agency
FAQs on Battery Raw Materials
What are the main raw materials used in batteries?
Lithium, cobalt, nickel, and graphite are the primary raw materials for batteries.
Which countries produce the most lithium?
Australia, Chile, and China together produce the majority of the world’s lithium.
Why are battery raw materials considered strategic resources?
Their concentrated supply, geopolitical dependencies, and rising demand make them critical for economic and political power.
Which countries are expected to remain top lithium producers by 2030?
Australia, Chile, and China are forecasted to remain the leading lithium producers, though their market shares may slightly decline.
Which companies control cobalt mining in the Democratic Republic of Congo?
Companies from China and Switzerland, including Glencore, control many cobalt mines in the DRC.
How can future battery technologies affect raw material demand?
Innovations like solid-state and sodium-ion batteries could change the types and amounts of raw materials needed.
