Carmakers Invest Billions in Mining to Overcome Electric Vehicle Battery Shortage

The shift toward electric vehicles by major automakers like General Motors has led to a scramble for critical battery minerals such as lithium, nickel, and graphite. The auto industry’s push for EVs has revealed a significant shortage of these minerals crucial for battery production. Car companies are entering the mining sector to secure a stable supply of these minerals, investing in mines, and guaranteeing purchases of extracted materials. Lithium, in particular, is a significant bottleneck, with demand expected to outstrip supply unless mining production dramatically expands. Companies like GM, Ford, and Stellantis have invested in mining projects to secure their supply chains. The alliance between the automotive and mining sectors brings together two industries with different operating dynamics and risk profiles.