Chinese battery manufacturer CATL has identified lithium mining—not mineral refining—as the biggest long-term constraint facing the electric vehicle (EV) battery industry, signaling a strategic shift toward securing upstream raw material supplies.
Speaking in an interview with Bloomberg, CATL Vice President Jiang Li said the company believes the industry’s future growth will depend more on expanding mineral extraction than increasing processing capacity, where China already holds a dominant position.
“Processing is not the bottleneck, but mining is,” Li said, adding that CATL intends to strengthen its competitive advantage by investing further upstream in the battery supply chain.
Mining Becomes Strategic Priority
For years, concerns over battery supply chains largely focused on China’s dominance in refining critical minerals such as lithium, cobalt and graphite. CATL now argues that securing sufficient raw material production has become the more pressing challenge as global EV demand continues to rise.
To support its mining strategy, the company plans to establish a dedicated mining business and has appointed Chen Jinghe, founder of Chinese mining company Zijin Mining, as an adviser.
CATL already holds interests in lithium, phosphate and cobalt projects both inside and outside China as it works to reduce dependence on imported mineral supplies.
The importance of upstream production became evident after CATL’s Jianxiawo lithium mine in Jiangxi Province resumed operations on June 29, following a permit dispute that halted production for nearly a year.
Before the suspension, the mine supplied an estimated 8% to 10% of China’s lithium carbonate output. News of its restart pushed Chinese lithium carbonate futures up 8.36%, highlighting the market’s sensitivity to supply disruptions.
With annual production capacity of approximately 100,000 tonnes of lithium carbonate, the mine is expected to contribute more than 45,000 tonnes of additional supply during the second half of 2026, according to market analyst forecasts.
Expanding Sodium-Ion Batteries
Alongside expanding mining operations, CATL continues investing in sodium-ion battery technology as a way to reduce dependence on lithium.
Unlike lithium, sodium is widely available around the world, offering a potential alternative when lithium prices rise or supply becomes constrained.
“If the price of lithium goes up, then we can make more sodium-ion batteries,” Li said.
Earlier this year, CATL announced an additional CN¥5 billion investment to expand sodium-ion battery production capacity at its Fujian manufacturing base by 40 GWh, increasing the site’s planned capacity to 149 GWh.
Securing the Battery Supply Chain
According to SNE Research, CATL held 40.1% of the global EV battery market between January and April 2026, making secure access to critical minerals increasingly important for both the company and the wider automotive industry.
By combining upstream mining investments with continued development of alternative battery chemistries, CATL aims to reduce exposure to raw material shortages while supporting long-term growth in global electric vehicle production.
The strategy reflects a broader trend toward vertical integration across the battery industry, where manufacturers are seeking greater control over both raw material extraction and advanced battery production to strengthen supply chain resilience.