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BATTERIES ers is much lower. logical diversi? cation, broader supplier networks, and, where

Therefore, the relevant question is not only where lithium, possible, long-term supply contracts guarding from mineral cobalt, nickel, or graphite are mined. It is also where they are price volatility. Another possibility is participation in mining re? ned, processed into battery-grade materials, and assembled projects in third countries, including through minority equity into cells, as well as which companies and investors ultimate- stakes or strategic o? take agreements. ly control these stages of the value chain and what the trends Second, recycling is becoming an investment theme, though are going forward. it is not a near-term ? x for mineral dependence. In the short term, feedstock remains limited because many batteries have

Prices Are Falling, But Volatility not yet reached the end of life. Yet, over time, recycling can

Has Not Disappeared reduce exposure to primary mineral markets and create op-

Battery prices have continued to decline (Figure 4). Chemis- portunities in collection, dismantling, and recovery of critical try shifts, process improvements, and intense competition have materials. Battery recycling could supply 20-30% of lithium, pushed pack prices downward, especially for LFP systems, nickel, and cobalt demand by 2050.

which avoid cobalt and nickel and bene? t from China’s produc- Third, investors should monitor technology diversi? cation. tion scale. In 2025, average battery prices fell by around 8%, Two trends matter – new battery types with di? erent material with the average Li-ion pack price standing at $108/kWh. pro? les, including sodium-ion, lithium-sulfur, and solid-state However, declining prices do not eliminate primary mate- batteries, and higher energy density in existing chemistries. rials supply-chain risk. Battery prices are exposed to shocks Sodium-ion could reduce dependence on lithium and nickel in in commodity markets driven by supply shifts, geopolitical some applications, though it still faces energy-density and scale- tensions, and other “black swans.” A sustained supply shock up limits. Lithium-sulfur and solid-state systems promise higher for battery metals could increase global average battery pack energy density – the latter prototypes have already reached en- prices by as much as 40-50%. ergy density around twice today’s Li-ion levels and improved safety but remain too early-stage for commercial deployment.

What This Means for Maritime Investors

First, maritime players need to pay closer attention to Don’t Look at the Lowest Price supply-chain localization and resilience. The objective is not Batteries are becoming increasingly attractive for maritime full self-su? ciency, which is unrealistic, but the reduction and o? shore applications, but the sector should not treat them as of critical bottlenecks. This can be achieved through techno- plug-and-play commodities. Strategic risk is moving upstream 28 Maritime Reporter & Engineering News • August 2026

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