Tesla Inc.’s ambition to remove rare earths from future models has producers in the sector reeling, but it also should spur global efforts to deliver alternatives for electric car motors that currently rely on the materials.

After Elon Musk complained that lithium — the ubiquitous raw material needed in electric vehicle batteries — was trading at insane levels, and China’s authorities in March pushed key industry players to act, prices briefly began to cool. Now, they’re rising again to add pressure on automakers.

Tesla Inc. has signed new long-term deals with two of its existing Chinese battery-materials suppliers, the latest move by automakers to secure supplies amid intensifying competition.

Rising demand from electric vehicles and challenges in securing raw materials will deliver a battery supply crunch for automakers already grappling with a chip crisis, according to a key Chinese manufacturer.

A surge in demand for electric vehicles is sending the price of raw materials soaring, threatening to slow the push toward making cheaper batteries that are key to more widespread adoption.