The key to the electric vehicle industry: China becomes the global power battery production giant

China has always been the largest and most dynamic market in the global electric vehicle market. According to the latest data, China has maintained this title for the past few years. China also has technological and market advantages in the key component of power batteries, making it the leader in the electric vehicle industry. Recently, a U.S. media report sparked people’s thinking: Would the world be able to manufacture electric vehicle batteries without China’s participation?

A recent article published in the New York Times pointed out that the manufacturing of electric vehicle batteries will determine the country’s economic and geopolitical advantage for decades and is one of the key competitions of our time. . Although Western countries have also invested a lot of money, whether it is the mining of rare minerals, the training of engineers, or the construction of large factories, China is far ahead, and it may take other countries decades to catch up.

Take the collection of rare minerals as an example. The article points out that the demand for rare minerals for electric vehicle batteries is about 6 times that of traditional cars. China invests to obtain a stable and cheap supply of minerals because mineral deposits containing the ingredients needed to make batteries are limited. Data shows that China controls 41% of global cobalt mining and most of lithium mining.

The article also pointed out that compared with China, the battery processing capabilities of the United States pale in comparison. It typically takes two to five years to build a refinery, with more time needed to train workers and commission equipment. In addition, China has become the world's largest battery producer in part because it has found ways to produce battery components efficiently and at lower costs. In this field, Chinese companies such as CATL and BYD have achieved huge first-mover advantages. According to Korea SNE According to the global power battery installation volume data released by Research from January to February 2023, CATL and BYD ranked among the top two in the world.

Experts say few other countries are self-sufficient in the battery supply chain. To succeed in the electric vehicle industry, any country will need some form of cooperation with China, either directly or indirectly.

Even if China already has a huge advantage in the electric vehicle market and power battery field, other countries still have opportunities to catch up with it through innovation and cooperation. Cooperation and sharing on a global scale are crucial to promoting the development of green transportation and achieving a sustainable future, and are crucial to the development of the electric vehicle industry.

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