{"id":23644,"date":"2022-06-02T09:03:54","date_gmt":"2022-06-02T13:03:54","guid":{"rendered":"http:\/\/autosector.com\/?p=23644"},"modified":"2022-06-02T09:03:54","modified_gmt":"2022-06-02T13:03:54","slug":"china-lithium-leverage-affects-tesla-others","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=23644","title":{"rendered":"How China’s Lithium Leverage Impacts Tesla And Other EV Makers"},"content":{"rendered":"

This article comes to us courtesy of\u00a0EVANNEX<\/a>, which makes and sells aftermarket Tesla accessories. The opinions expressed therein are not necessarily our own at\u00a0InsideEVs<\/a>, nor have we been paid by\u00a0EVANNEX<\/a>\u00a0to publish these articles. We find the company’s perspective as an aftermarket supplier of Tesla accessories interesting and are happy to share its content free of charge. Enjoy!<\/em><\/p>\n

Posted on<\/span>\u00a0EVANNEX on June 02, 2022,\u00a0by<\/span>\u00a0Zachary Visconti<\/p>\n

Tesla and other electric vehicle manufacturers rely heavily on a few different minerals. One of them, lithium, is largely mined, refined and processed by China, though lithium deposits can be found worldwide. Still, China\u2019s jump on the raw materials game for EV minerals will make it hard for other countries to compete at such a scale, and it could mean a few things for Tesla and other EV makers.<\/p>\n

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Above: A mining pit in Yuqia, Qinghai, China. Photo:\u00a0Darmau Lee<\/a>\u00a0\/ Unsplash<\/em><\/div>\n

China<\/a> is aggressively trying to maintain its dominance in lithium and other mineral processing for EV batteries, as depicted in a worldwide analysis of the industry shared by Gavekal Research earlier this month. The news, as reported by\u00a0Barron\u2019s<\/em><\/a>, comes amidst surging EV demand as consumers begin to turn toward zero-emission technology \u2014\u00a0resulting in\u00a0lithium price increases<\/a>\u00a0of as much as 400 percent over the last year.<\/p>\n

The International Energy Agency estimates the value of lithium sales to increase 20-fold in the decade leading up to 2030, and China is already leading the world\u2019s lithium market. Additionally, Tesla<\/a> gets most of its lithium from the country, with some of it coming from companies with Argentinian mining operations. Still, estimates hold that China refines more than half of the world\u2019s lithium.<\/p>\n

\u201cIt refines 60% of the world\u2019s lithium, controls 77% of global battery cell capacity and 60% of the world\u2019s battery component manufacturing,\u201d wrote Gavekal of China. \u201cOf 200 battery mega-factories in the pipeline to 2030, 148 are in China.\u201d<\/p>\n

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