Turning volatility into victory: A toolbox for battery makers

As the electric vehicle (EV) revolution accelerates, battery makers find themselves at the forefront of a burgeoning industry but an industry not without its challenges

However, this growth comes with a set of unique challenges that demand strategic solutions. From limited standardized metrics to rapid technological advancements, price volatility, lack of transparency and complex supply chains, battery manufacturers must navigate a challenging terrain.

We understand that these challenges can be unsettling. Our toolkit for battery makers gives you actionable insights and a clearer idea of how our products and services can help you.

Download the full ebook, ‘Turning volatility into victory: Fastmarkets’ toolbox for battery producers in a shifting market’.

Limited standardized metrics

The infancy of the battery market has led to a dearth of standardized metrics and benchmarks. This makes it challenging for battery makers to accurately compare and assess battery material and black mass prices across the value chain and across different regions.

Rapid technological advancements

The evolving landscape of battery technologies introduces both opportunities and challenges. The development of direct lithium extraction techniques impacts production costs and supply chain dynamics.

Battery makers need to stay at the forefront of technological advancements, investing in research and development to capitalize on emerging opportunities while mitigating potential risks. Flexibility and adaptability are key in this ever-changing environment.

Price volatility

Fluctuations in raw material prices, particularly for lithium, cobalt and nickel, directly affect the overall cost of battery production.

This volatility creates difficulties in forecasting and analysis. Battery manufacturers must implement risk mitigation strategies, such as diversifying sourcing channels and leveraging real-time market intelligence to navigate these uncertainties and maintain cost competitiveness.

Overcoming challenges with certainty

Navigating the dynamic terrain of the battery market demands not only reliable data but also accurate forecasts. To make informed decisions and anticipate market changes, battery makers can leverage specialized insights and forecasts from industry leaders like Fastmarkets.

This proactive approach enables manufacturers to stay ahead, anticipate shifts in the market and maintain a competitive edge.

Lack of transparency

Limited transparency across the supply chain, from data availability to cell chemistry and cost structures, complicates decision-making processes. Did you know that while lithium iron phosphate (LFP) is taking market share from nickel, cobalt, manganese (NCM) batteries, NCM is still expected to retain the dominant market share?

Fastmarkets forecasts that electric vehicles (EVs) containing NCM batteries should reach 19.5 million units in 2030 and that the EV industry will account for 47% of the total demand for cobalt by then.

Complex supply chains

The global nature of the battery materials supply chain involves multiple stakeholders across different geographies, adding layers of complexity. Effective forecasting and planning require a holistic understanding of the supply chain.

Battery makers are at the forefront of an industry that holds immense potential but is not without its challenges. By staying abreast of technological advancements, implementing risk mitigation strategies, leveraging specialized insights, and investing in supply chain visibility, manufacturers can navigate the dynamic market with confidence.

Turning complex challenges into strategic advantage

Our ebook ‘Turning volatility into victory: Fastmarkets’ toolbox for battery producers in a shifting market‘, provides a state of the market by exploring four key, real-life scenarios and how Fastmarkets can offer practical, intelligible solutions.

What to read next
Collecting a premium for green flat-rolled steel in the US will be a long, bottom-up process for an industry already regarded as one of the world’s cleanest, market sources recently told Fastmarkets
Copper fabricators in China and the wider Southeast Asian region continue to feel the pain of high copper prices on futures exchanges and a lack of new orderbooks, with some having already asked for a postponing of shipments of long-term copper cathodes, sources told Fastmarkets in the week to Wednesday May 15
This legislation emphasizes the crucial role of graphite in electrification efforts and highlights the ongoing significance of both natural and synthetic graphite in the EU's green transition journey
Standard Lithium announced on Wednesday May 8 that it was forming a partnership with the multinational energy company Equinor to accelerate the development of its South West Arkansas and East Texas lithium brine projects in the United States
The viability of e-fuels as an alternative to electric power is debated due to their high cost and unclear role in decarbonization efforts
Recent weeks have seen a significant number of miners agreeing sales of copper concentrate to traders for one to four years of supply, Fastmarkets has learned