According to CATL, what is the primary bottleneck in battery production — mining or refining — and why?

According to CATL Vice President Jiang Li, 'mining is the bottleneck, not processing,' because securing raw material supplies — especially ores like lithium, phosphate, and cobalt — has become a priority for the world’s largest EV battery manufacturer. While China dominates battery mineral refining, it still relies heavily on imported ores, creating supply vulnerabilities; thus, CATL is establishing a new mining unit and leveraging expertise from top mining executives to build upstream capabilities and cost advantage.

What alternative strategy is CATL pursuing to mitigate lithium price volatility and supply risk?

CATL is advancing sodium-ion battery technology as an 'alternative risk management strategy' — since sodium is globally abundant, the company can shift production toward sodium-ion batteries if lithium prices surge, as stated by Jiang Li: 'If the price of lithium goes up, then we can make more sodium-ion batteries.'

CATL Says Mining, Not Refining, Is Battery Making’s Big Hurdle

Jul 1, 2026

CATL identifies mining as the key bottleneck for EV batteries over refining, planning upstream investments in lithium and cobalt while pivoting to sodium-ion technology to mitigate supply risks.

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