THINK AGAIN WHAT WILL HAPPEN WITH LITHIUM DEMAND SOON? EXPLOSIVE
China has shaken up the car market after developing a revolutionary battery that can charge in just 10 minutes and power a vehicle for hundreds of miles before it needs to be plugged in.
Remarkable advances in battery chemistry
A report from the International Energy Agency (IEA) has praised the “remarkable” developments in battery chemistry that have enabled China to make significant strides in creating new battery technologies with much greater energy capacity than existing ones. According to the IEA, these electric vehicle (EV) batteries can travel up to 400 kilometers on a single charge. However, newer versions have exceeded this, reaching a range of 600 kilometers.
Concerns over China’s supply chain dominance
Despite these advancements, the IEA has raised concerns over China’s growing dominance in the supply of essential materials for battery production. The world’s reliance on China for these materials poses a risk to global progress toward net-zero emissions, as it could be disrupted by factors such as extreme weather, trade disputes, or geopolitical tensions.
In its Global Critical Minerals Outlook, the IEA emphasized that the Chinese company CATL has developed a fast-charging battery called the “Shenxing”, which can provide 400 kilometers of range from just a 10-minute charge. The battery is expected to be integrated into electric vehicles later this year.
Shenxing Plus a new level of range
The IEA’s report was published before CATL’s latest announcement, made last month, where the company revealed the development of the Shenxing Plus battery, which can offer 600 miles (960 kilometers) of range between charges. This means that vehicles equipped with these new batteries will need to be recharged much less frequently than most current EVs, and at a significantly lower cost.
Innovations in battery chemistry
China has made significant breakthroughs in battery chemistry, putting it far ahead of its Western competitors. One of the most notable innovations is the resurgence of the lithium iron phosphate (LFP) cathode chemistry, which has doubled the energy density of batteries and dramatically extended their range.
This breakthrough is likely to be welcomed by drivers, many of whom have expressed concerns about “range anxiety”, the fear of running out of battery power during a journey. With these new technologies, this fear is expected to diminish substantially.
China’s dominance in critical minerals
The report warns that China has cornered much of the global market for the minerals needed to make batteries, raising alarm among Western governments concerned about China’s influence over the green energy market.
The IEA’s report analysed the global supply, demand, and uses of essential minerals such as lithium, cobalt, nickel, graphite, and copper, all of which are crucial for producing low-carbon energy. While supplies of these metals are increasing, China dominates the market, which presents risks for the speed of the energy transition.
Composition of EV batteries
EV batteries rely on several key minerals. For instance, cathodes typically include compounds of nickel, lithium, manganese, cobalt, and iron, while anodes usually contain compounds of graphite and silicon.
The IEA highlighted that China now dominates the global supply of all these critical minerals. According to the agency, by 2030, over 90% of battery-grade graphite and 77% of refined rare earth elements will come from China.
Furthermore, between 70% and 75% of projected supply growth for refined lithium, nickel, cobalt, and rare earth elements between now and 2030 will come from today’s top three producers. For battery-grade spherical and synthetic graphite, nearly 95% of supply growth is expected to come from China.
China’s success in the EV market
China’s global dominance in the electric vehicle market is the result of its massive domestic market and the consumer subsidies offered to promote EV purchases, according to the report. Last year, 60% of all EVs sold worldwide were bought by Chinese consumers.
Much of China’s success can be attributed to the deployment of new technologies, which have given EVs greater range and faster charging times without significantly increasing the size of the batteries. This has helped to overcome the issue of range anxiety, which has long deterred European drivers from switching to electric vehicles.
Dominance in other key technologies
The IEA study also pointed to China’s dominance in a range of other critical minerals and technologies essential for the energy transition. For example, 90% of the global supply of solar panels comes from China. The country also leads in the production of electrolysers, used to generate hydrogen from water, and in the manufacturing of wind turbines and associated infrastructure like transformers and cables, which all depend on the same set of critical minerals.
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