22/12/2025
Mining News

European Automakers Move Upstream to Lock In Long-Term Supplies of Critical EV Minerals

Europe’s leading automakers are increasingly moving upstream, signing long-term agreements with mining companies to secure critical raw materials for electric-vehicle production. Recent deals across Africa, South America, Australia, and the Balkans reflect growing concern over the stability of supply chains for lithium, nickel, cobalt, graphite, and rare earths.

This shift marks a clear break from traditional procurement models in which carmakers relied on suppliers to manage raw-material sourcing. As EV production scales rapidly, exposure to volatile mineral markets has become a strategic risk. Direct agreements allow automakers to stabilise costs, protect production schedules, and gain greater visibility over future supply.

The new partnerships range from multi-year offtake contracts to equity investments in mining projects, and in some cases joint development of new deposits. For miners, these arrangements provide financing certainty and guaranteed demand. For automakers, they offer predictable access to materials increasingly shaped by geopolitical tensions and export restrictions.

Regulatory pressure in Europe is also driving this trend. Battery passports, carbon-footprint disclosures, and traceability requirements make direct engagement with miners more attractive, enabling manufacturers to verify environmental and social standards throughout the value chain.

While upstream involvement introduces new risks, industry leaders argue that securing mineral supply is now essential to competitiveness. By integrating more closely with mining partners, European automakers are building a more resilient foundation for the continent’s electric-mobility transition.

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