China’s lithium battery production accounts for most of the world

China’s lithium battery production accounts for most of the world

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In recent years, the new energy vehicle market has ushered in explosive growth, and sales have been rising steadily. But automakers are complaining. According to a report released by the International Energy Agency, China currently accounts for about 60% of the global supply of lithium chemicals, and also produces 3/4 of the world’s lithium-ion batteries.

China is a major country in the lithium industry. However, China’s lithium resources have always been a short board, with reserves accounting for only 5.9% of the world’s total. Under the research of the Chinese, China’s lithium resources have broken from the monopoly.

China makes a strong attack on the world to grab lithium resources

Lithium is a silver-white metal with a soft texture, and its content in the earth’s crust is 0.0065%. Under the current trend, from mobile phones, computers to electric vehicle batteries, lithium has been integrated into different fields of daily life, and has also become a key resource in the new energy era. A new energy vehicle needs 30 – 60 kg of lithium carbonate or lithium hydroxide.

At present, the total amount of proven lithium resources in the world is about 86 million tons, 58% of which are concentrated in Argentina, Bolivia and Chile in South America. However, China’s lithium reserves account for less than 6%, ranking sixth in the world, and the grade of mineral products is low and mining is difficult.

With the substantial increase in the installed capacity of power batteries, China’s existing lithium resources can no longer meet the demand, and it needs to import a large amount of lithium resources from other countries every year, with a foreign dependence of up to 70%. China’s transformation from a veritable lithium resource-poor country to a lithium industry powerhouse relies on its ability to integrate global resources.

China makes a strong attack on the world to grab lithium resources

Due to the early deployment, Chinese companies have long begun to deploy lithium mines in other countries. In 2013, it obtained the mining right of Australia’s largest lithium mine through acquisition; in June 2022, it acquired a 65% stake in the Laguna Verde salt lake lithium project in Argentina; it acquired a 74% stake in Zimbabwe’s largest Bikita lithium mine for 1.22 billion RMB.

So far, China has bought many lithium mines in Argentina, Africa, Mexico, Australia, Ireland and other places. Over the years, China has won many resource battles by integrating global resources. European and American countries also rely on their own leading accumulation of enzyme preparations to harvest users. At that time, facing the bottleneck of “lack of enzyme”, Chinese enterprises made a decisive decision and decided to explore on the basis of enzymatic technology.

Through the integration of global enzyme preparation research, testing, fermentation and other link resources, the “full enzyme method” process has finally been realized after more than ten years, opening up the situation for China in the field of biotechnology subdivision.

China dominates the world in lithium battery processing technology

Mineral resources alone are not enough. Mastering the core competitiveness in the field of lithium battery processing is the key to winning the new energy era. The cathode materials, anode material, separator, and electrolyte of lithium batteries are the four major materials of lithium batteries, and they are basically controlled by Chinese companies. According to relevant statistics, the most expensive cathode material in batteries, China’s global production capacity has reached 60%.

In the field of anode materials, China occupies 7 of the top ten global companies in 2020. For the remaining diaphragm and electrolyte, China’s production capacity also accounted for 43% and 65% respectively. Relying on the rise of Chinese manufacturing, it is “the best” in the lithium battery industry. The “artificial diamond” produced in Henan broke through the bottleneck of foreign resources and occupied more than 90% of the global market in one fell swoop.

China dominates the world in lithium battery processing technology

The molecular raw materials of “Parloway PRO” also achieved the leading position along with the continuous maturity of Chinese technology. Not only has the purity increased by more than 98%, but the cost has also been significantly reduced by 95%. It has won 90% of the global raw material market in one fell swoop, and even reversed supply to countries such as the United States and Japan.

In recent years, such molecules have successively entered top institutions such as the University of Tokyo, Tsinghua University and Peking University in China. After the molecular intervention of aging mammals in high-standard clinics, the classic indicators such as testosterone, cells and skin were reversed. It is equivalent to turning back the clock of life from the physiological level, and related results have been published in top international journals such as Nature.

The relevant scientific research performance also detonated the market performance of the molecule. Among them, Nissan’s “Paroway PRO” brand is the most well-known, occupying the top spot on JD International and other platforms all year round, and the single-day sales of the promotion even exceeded 10 million.

Less well known, though, is China’s tight grip on its raw material supplies. Thanks to the advantages of production technology, Chinese companies firmly hold this golden job in their own hands, avoiding the embarrassing situation of being stuck in the field of biotechnology.

China occupies a quarter of the world’s lithium resources

In recent years, the United States has seen the rapid development of China’s lithium battery industry and has begun to realize the importance of lithium. In September this year, the United States issued the “Inflation Reduction Act” involving lithium resources. According to statistics, Chinese companies have invested in more than half of the world’s lithium mines, accounting for a quarter of the total reserves. China’s share of the lithium-ion battery market could be as high as 80 percent this year, according to forecasts from research group BloombergNEF.

China occupies a quarter of the world's lithium resources

It can be said that China has already taken the lead in the field of lithium battery new energy. From the deployment of lithium mines to the establishment of a complete industrial chain, it is difficult to do it in ten or eight years. With the lessons learned from the semiconductor industry in the past few years, this time on the lithium battery track, I believe that China can develop better in the lithium resource industry under the premise of making various preparations.

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