From the South China Morning Post, May 14:
The
production of lithium – an essential ingredient in batteries for
electric cars – has become easier and significantly cheaper, thanks to a
technological breakthrough, just as US concerns about China’s dominance
in the supply chain are on the rise.
The
cost of extracting the mineral has been slashed to a “record low” of
15,000 yuan (US$2,180) per tonne by the new process, a Chinese
government report said.
That
compares to an international price for lithium ranging from US$12,000
to US$20,000 per tonne – and a long-term contract price of about
US$17,000 – over the past year, according to some industrial estimates.
The precise production costs of lithium are a closely guarded business secret, but industry insiders interviewed by the South China Morning Post agreed that the rate quoted in the report could be considered one of, if not the lowest, around.
While
China’s lithium output is still relatively low, it dominates supply of
the end product, producing nearly two-thirds of the world’s lithium-ion
batteries, compared with 5 per cent for the United States, and also
controls most of the world’s lithium processing facilities, according to
data from Benchmark Minerals Intelligence.
The
US has moved to offset China’s dominance in the electric car supply
chain, with draft legislation aimed at streamlining regulation and
permitting requirements for the development of mines for lithium,
graphite and other minerals used in the process.
Republican Senator Lisa Murkowski, who introduced the Minerals Security
Act alongside Democratic Senator Joe Manchin at the beginning of May,
said China’s lead in the electric car supply chain sector gave it an
edge in the ongoing trade dispute.
“My
greatest challenge right now is to educate other members of Congress as
to why this needs to be a national priority,” she said.
“Our
challenge is still a failure to understand the vulnerability we are in
as a nation when it comes to reliance on others for our minerals.”
The US is not the only country playing catch-up with China. France and
Germany have also asked the European Commission to support a 1.7 billion
euro (US$1.9 billion) battery cell consortium, aimed at reducing
China’s dominance....
MUCH MORE
