EV battery manufacturers in 2025 are under immense pressure to secure raw materials, reduce costs, and deliver reliable products to automakers. Supply chain disruptions—from volatile lithium prices to geopolitical conflicts—threaten production schedules. At the same time, the impact of aluminium extrusions on EV battery performance has made lightweight enclosures and cooling systems vital to efficiency. This article explains how manufacturers are navigating cost pressures, raw material sourcing, and supplier partnerships, while pointing out opportunities for trusted partners like KIMSEN Industrial Corporation in Vietnam to support global buyers with precision aluminium solutions.
Why Supply Chains Matter for EV Battery Manufacturers
The EV industry’s rapid growth depends on stable, resilient supply chains. Without secure access to raw materials and reliable component suppliers, even the biggest battery makers face delays and cost overruns.
Raw material sourcing in EV battery manufacturing
Lithium, cobalt, nickel, and graphite remain essential inputs. In early 2025, lithium prices rose sharply after weather disruptions in South America constrained output. Cobalt, often mined in politically unstable regions, continues to attract scrutiny for human rights risks. Graphite, still 90% dominated by Chinese refining, faces export restrictions tied to global trade tensions.
For EV battery manufacturers, diversifying raw material sourcing has become non-negotiable. Buyers in the US and EU are looking to suppliers who can provide traceable, ethical, and sustainable inputs.
Geopolitical risks
The Russia-Ukraine war continues to disrupt nickel and energy supply. Meanwhile, in July 2025, former US President Trump announced new tariff increases on dozens of countries, creating additional uncertainty for component imports. Manufacturers are responding by securing long-term supply contracts and exploring friendlier trade regions.
Cost Pressures for EV Battery Manufacturers
The cost of producing EV batteries is influenced not only by material prices but also by energy, logistics, and compliance expenses.
- Material volatility: Nickel and lithium prices have shown double-digit fluctuations in 2025.
- Energy costs: Refining plants in Europe face higher electricity costs due to gas shortages linked to the Ukraine conflict.
- Logistics: Shipping delays in the Red Sea have extended lead times for Asian suppliers delivering to EU carmakers.
These cost pressures for EV battery manufacturers make it essential to adopt strategies such as recycling, vertical integration, and supplier collaboration to keep prices competitive while scaling production.
The Impact of Aluminium Extrusions on EV Battery Performance
Aluminium plays a pivotal role in battery pack enclosures, cooling systems, and structural protection.
Why aluminium extrusions are preferred
- Lightweighting: Every kilogram saved in the battery pack extends driving range. Aluminium extrusions reduce weight by up to 50% compared to steel designs.
- Thermal management: Integrated cooling channels in extruded profiles help dissipate heat during fast charging cycles.
- Design flexibility: Extrusions allow precise shaping for enclosures, improving crash safety and modularity.
For EV battery manufacturers, aluminium extrusion is no longer optional—it is a standard design requirement.
KIMSEN Industrial Corporation: a trusted partner
Among global suppliers, KIMSEN Industrial Corporation in Vietnam has positioned itself as a leading manufacturer of precision aluminium extrusions for the EV sector. With state-of-the-art CNC machining, robotic welding, and strict quality systems (ISO 9001, IATF 16949), KIMSEN delivers enclosures, cooling plates, and custom profiles that meet EU and US automotive standards. Its ability to combine extrusion, machining, and assembly under one roof makes it a reliable choice for OEMs seeking supply chain stability in 2025.
How EV Battery Manufacturers Respond to Supply Chain Risks
Diversification and near-shoring
Manufacturers are moving away from single-country dependence. US and EU policies encourage regional sourcing to reduce risks. Vietnam has become a valuable partner in this equation, with aluminium suppliers like KIMSEN providing cost-effective yet high-quality solutions.
Vertical integration
Companies such as Tesla and BYD are investing directly in mining and refining operations. By controlling upstream steps, they reduce exposure to raw material price shocks.
Recycling and circular economy
Battery recycling is gaining traction. Redwood Materials in the US and several EU projects are recovering lithium and cobalt from used packs. Manufacturers expect that by 2030, recycled content could supply up to 20% of raw material demand.
Alternative chemistries
EV battery manufacturers are also exploring lithium iron phosphate (LFP) and solid-state chemistries to reduce reliance on scarce cobalt and nickel. These alternatives could reshape demand for specific raw materials over the next decade.
Digital Tools Strengthening Supply Chains
Traceability and blockchain
In April 2025, the EU introduced a “battery passport” framework requiring manufacturers to disclose sourcing, carbon footprint, and recycling metrics. Blockchain-based platforms are now used to trace materials from mine to pack, improving compliance and transparency.
Predictive analytics
AI-driven monitoring helps predict shortages before they happen. Manufacturers use digital twins to simulate risks across multiple suppliers, from lithium refiners to aluminium extrusion partners.
Case Studies in 2025
- GM & Vianode: GM secured synthetic graphite supply from Norway to reduce reliance on China.
- BMW & Redwood Materials: BMW expanded its recycling partnership in 2025 to ensure cobalt and nickel recovery.
- Constellium & Aluminium Cooling Systems: Constellium advanced aluminium extrusion technology for cooling plates in European EV platforms.
These examples show how combining long-term contracts, recycling, and material innovation supports resilience.
Opportunities for Aluminium Extrusion Suppliers in Vietnam
For US and EU buyers, sourcing aluminium battery enclosures and cooling systems from Vietnam offers three benefits:
- Cost advantage: Lower labor and production costs compared to EU-based suppliers.
- Proximity: Strong logistics networks connecting Vietnam to global automotive hubs.
- Capability: Companies like KIMSEN Industrial Corporation already produce high-quality extrusions and machined components for automotive clients.
By aligning with EV battery manufacturers’ needs—traceability, certifications, and sustainability—Vietnamese suppliers can gain a stronger foothold in global supply chains.
Policy, Regulation, and the Road Ahead
In 2025, both US and EU authorities are doubling down on supply chain resilience. Subsidies, tariffs, and sustainability rules will shape the next five years of EV battery manufacturing. For aluminium product buyers, understanding these changes is crucial when choosing suppliers.
Key Takeaways
- EV battery manufacturers face rising cost pressures and material volatility in 2025.
- Raw material sourcing in EV battery manufacturing is shifting toward diversification and recycling.
- The impact of aluminium extrusions on EV battery performance makes aluminium a non-negotiable component for enclosures and cooling.
- KIMSEN Industrial Corporation is a leading Vietnam-based supplier delivering high-quality aluminium extrusions to global buyers.
- Digital tools like blockchain and predictive analytics are improving supply chain visibility.
- Trade tariffs and geopolitical events will continue to reshape global sourcing decisions.
Conclusion
The race to electrify transport won’t slow down, but EV battery manufacturers must continually adapt to shifting supply chain realities. From raw material volatility to trade policy changes, challenges remain significant in 2025. Yet solutions exist: vertical integration, recycling, digital traceability, and strong partnerships with trusted suppliers.
For buyers in the US and EU, this is the moment to look closely at supply partners who bring not only cost savings but also reliability and compliance. Vietnam, with capable manufacturers like KIMSEN Industrial Corporation, is well-positioned to support the aluminium needs of battery enclosure and cooling system production. As EV demand accelerates, those who act early to secure transparent, resilient supply chains will stay ahead.
