China dominates the supply chain for electric vehicle batteries and 79 percent of the capacity to manufacture lithium-ion batteries globally, compared to only 5.5 percent for the United States, according to Benchmark Mineral Intelligence, which provides advisory services related to critical minerals to governments.
Australia and China, respectively, lead the list of major producers of lithium needed for the manufacture of electric batteries, while the United States has the fifth largest global reserves of the metal, but there is only one active lithium mine in Silver Peak, Nevada, and the rest of the mines face problems and complications related to operating permits. According to Bloomberg Agency.
Administrative complexities in America
An economist from Washington, Morris Kegler, told “Sky News Arabia Economy” that the US authorities are seeking, in cooperation with electric car makers in particular, to implement a plan for a full domestic supply of electric car batteries to reduce dependence on China.
He explained that there are persistent American fears of relying on one country to import electric batteries or the raw materials needed to manufacture them, regardless of which country is relied upon, and because lithium metal is the basis for the manufacture of electric batteries, the United States is striving vigorously to extract this important metal from Several mines scattered throughout.
He continued that the quest to extract lithium locally in the United States in order to confront China’s dominance in the manufacture of electric batteries, as well as to keep pace with the world’s trend towards the manufacture of electric cars for environmental reasons and high energy prices, as well as the increase in the value of this metal by 100 percent during the current year, which made the value of importing it very expensive. .
He pointed out that statistics indicate the need to double the supply of lithium fivefold globally to keep pace with the large increase in the electric car industry, but the biggest challenge in the United States lies in obtaining local and federal permits to operate lithium mines.
He emphasized that despite US President Joe Biden finally activating the Defense Production Act of 1950, to encourage local production of basic materials needed for a transition in the energy sector, there are complications with regard to lithium mine permits because the mineral in the United States is found in areas of reserves, swamps and near resorts, which makes There is environmental opposition, and it will take time to overcome all obstacles, but the United States is determined to move forward with the task.
China’s control is pervasive
While the expert on Sino-American relations, Amer Tammam, said in statements to “Sky News Arabia Economy” that with regard to the manufacture of electric car batteries, it is the most important part in the field of electric cars in general, and it is a promising market globally, which makes competition fierce not only between China and the United States. the United States, but also with Europe.
He pointed out that the United States recently approved a financial package to support companies in confronting China in general, and that package included support for the electric car industry and wresting hegemony from China in the electric car battery industry in the coming years, but nevertheless Chinese control will remain for a long time, because China has established That industry right and I prepared for this competition early on.
He explained that, according to the same American statistics, the United States builds a factory for electric car batteries every 4 months, in contrast to that China almost opens a factory every week, which makes China control more than half of the market for this industry in the world alone, in addition to being the largest consumer of cars. electric and electric batteries in the world.
Tammam said that even if we talk about the electric car industry, the American company Tesla is the largest in the world without a competitor, but China realized this matter early and opened a large factory for Tesla at a cost of $ 4 billion in Shanghai, and this factory is the one that produces the majority of Tesla’s production now. Hence, even the American control over the electric car industry has become in Chinese hands and through China.
He stressed that given that China produces 80 percent of the rare metals needed for the manufacture of electric batteries such as lithium, and even the cobalt material needed for this industry as well, 80 percent of which is concentrated in the Congo, Chinese companies realized this and became the ones that extracted that material there, as well as control companies China is able to extract nickel from Indonesia, and then China has the battery minerals and the technology needed to manufacture them.
He stressed that although China established a Tesla factory in Shanghai, it also opened its own Chinese electric car manufacturers, taking advantage of its competitive advantage, which is its control over the electric battery industry, and China has become a competitor to Tesla itself.
#detail.. #dominant #USChinese #war #electric #batteries