The rapid advancement of next-generation battery technologies is driving demand for a variety of rare battery metals beyond just lithium and cobalt. Metals like nickel, manganese, vanadium, graphite, and rare earth elements (REEs) are becoming critical components for batteries powering electric vehicles (EVs), grid storage, and emerging energy applications. Investors looking to capitalize on this transition should consider companies that mine, process, or supply these rare battery metals.
Why rare battery metals matter
- Technological innovation: Next-gen batteries use diverse chemistries (NMC, LFP, solid-state, flow batteries), each requiring specific metals.
- Supply constraints: Many of these metals are geographically concentrated, with limited primary production capacity.
- Energy transition: Increasing electrification of transport and renewables storage underpins strong demand growth.
- Sustainability focus: Some metals enable batteries with lower carbon footprints or better recyclability.
Key rare battery metals and leading stocks
1. Nickel
Used in high-energy-density cathodes (NMC, NCA batteries) for EVs.
- Vale S.A. (NYSE: VALE): One of the world’s largest nickel producers with diversified mining assets.
- Norilsk Nickel (OTC: NILSY): Russian giant producing high-grade nickel and other battery metals.
- BHP Group (NYSE: BHP): Growing nickel output in Western Australia with an emphasis on battery-grade nickel.
2. Manganese
Essential in battery cathodes for stabilization and improved cycle life, especially in LMO and NMC chemistries.
- Giyani Metals Corp. (TSX-V: EMM / OTCQX: CATPF): Developing high-purity manganese projects in Botswana.
- South32 Limited (ASX: S32 / LSE: S32): Major manganese producer with assets in Australia and South Africa.
3. Vanadium
Key metal in vanadium redox flow batteries and steel alloys.
- Bushveld Minerals (LSE: BMN / JSE: BMN): Leading primary vanadium producer.
- Energy Fuels Inc. (NYSE American: UUUU / TSX: EFR): Produces vanadium as a byproduct alongside uranium.
4. Graphite
Critical for lithium-ion battery anodes.
- Syrah Resources Ltd. (ASX: SYR / OTCQX: SYAAF): Operates the Balama graphite mine in Mozambique.
- Magnis Energy Technologies Ltd. (ASX: MNS): Developing graphite projects and battery anode manufacturing.
5. Rare Earth Elements (REEs)
Used in permanent magnets for electric motors and advanced battery components.
- MP Materials Corp. (NYSE: MP): Controls Mountain Pass mine, the largest REE producer in the U.S.
- Lynas Corporation Ltd. (ASX: LYC / OTCQX: LYSCF): Leading REE miner and processor outside China.
ETFs with exposure to rare battery metals
- Global X Lithium & Battery Tech ETF (LIT): Includes diversified battery metal miners and battery manufacturers.
- VanEck Rare Earth/Strategic Metals ETF (REMX): Focused on REEs and other strategic battery metals.
- Amplify Lithium & Battery Technology ETF (BATT): Targets a broad range of battery metals producers.
Investment considerations
- Project location and geopolitical risk: Supply concentration in certain regions can affect security of supply.
- Production scalability: Capacity expansions and processing capabilities are critical for meeting future demand.
- Offtake agreements: Partnerships with battery makers and automakers validate market access.
- Sustainability: Mining practices and carbon footprint increasingly influence investment decisions.
Rare battery metals underpin the next wave of energy storage innovation. Stocks with strong asset bases, integrated supply chains, and strategic customer relationships stand to benefit as next-generation battery technologies scale worldwide.