The automotive supply chain: A guide to strategically sourcing raw materials

As the demand for battery materials continues to grow, those in procurement are facing a huge challenge: making sure they can get a steady and reliable supply of battery materials

How healthy is your supply chain?

In this fast-moving market, having the right insights and data is crucial. It helps businesses make smart decisions, strengthen their automotive supply chains and stay ahead in the tough battery materials market.

Use our checklist for procurement specialists in the automotive market to make a full assessment of the health of your supply chain, identify potential gaps and see how our solutions can help you navigate this competitive landscape.

Do you have visibility over supply and demand forecasts for strategic planning?

Gaining an insight into battery material price movements, as well as supply and demand dynamics is a significant advantage for any organization. The price of key battery materials remains volatile. The lithium price in particular has seen some significant declines this year.

With experts embedded in this market providing price data and market intelligence, you can stay ahead in this ever-evolving market.

Are you looking at other alternatives to diversify supply?

Battery recycling and black mass can diversify your supply of battery materials by providing alternative sources of raw materials. It can also help you meet your tough ESG goals. The recycling market has seen significant investment recently and accounts for 5% of total battery metal production.

Of the total material supplied to the market in 2023, 5% of cobalt came from battery recycling, 6% of lithium carbonate equivalent (LCE) and 1% of nickel. Fastmarkets forecasts secondary supply to increase to 12%, 7% and 5% respectively by 2033.

The Fastmarkets Battery Recycling Outlook includes 10-year battery supply and black mass price forecasts to give material manufacturers, battery makers, automakers and battery recyclers the insights and forecasts to understand and leverage the increasing recycled supply. 

Are you able to set accurate cost expectations by keeping up with price changes?

Receiving daily updates on price data helps you understand the current value of raw materials, which in turn forms the basis for buying, selling and trading strategies.

Fastmarkets forecasts that cell costs will continue to come down in the short-term. Nickel, cobalt manganese (NCM) 811 and lithium iron phosphate (LFP) both have the potential to reach below 70 dollars per kWh on the cell-level by 2029. However, beyond this point, there is a risk of constrained supply pushing costs back up. 

The Fastmarkets Battery Cost Index tracks and offers key insights into the cost of cathode active materials (CAM), anode materials and chemistries across different regions. 

These are just some of the questions in our checklist for procurement. Find out how you’re performing and where the gaps are. Our battery material outlooks and forecasts will provide you with all the data and analysis you need to find procurement success.

What to read next
Read Fastmarkets' monthly battery raw materials market update for May 2025, focusing on raw materials including lithium, cobalt, nickel, graphite and more
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Cobalt Holdings plans to acquire 6,000 tonnes of cobalt. Following their $230M London Stock Exchange listing, this move secures a key cobalt reserve. With the DRC’s export ban affecting prices, the decision reflects shifting industry dynamics
The recent US-China agreement to temporarily reduce tariffs is a major step for global trade, with tariffs on US goods entering China dropping from 125% to 10% and on Chinese goods entering the US decreasing from 145% to 30% starting May 14. While this has boosted markets and created optimism, key industries like autos and steel remain affected, leaving businesses waiting for clearer long-term trade policies.
The US-China trade truce announced on May 12 has brought cautious optimism to China’s non-ferrous metals markets, signaling a possible shift in global trade. Starting May 14, the removal of additional tariffs has impacted sectors like battery raw materials, minor metals and base metals such as zinc and nickel, with mixed reactions. While the improved sentiment has lifted futures prices and trade activity, the long-term effects remain unclear due to challenges like supply-demand pressures and export controls.
The US-UK trade deal removes Section 232 tariffs on British steel and aluminium, reduces automotive tariffs and sets a framework for addressing global trade issues.