EQUAL The world is gradually changing For the widespread use of battery electric vehicles, there are hundreds of billions of dollars at stake for automakers as well as corporations that control the resources needed to produce electric vehicles. So far, the People’s Republic of China has positioned itself as the main beneficiary of the transition as well as a potential referee of people who do and don’t make electric cars.
A recent report from New York Times outlines how China controls a significant portion of the world’s minerals and the facilities needed to produce electric cars. China’s ownership of overseas mining operations, such as a cobalt mine in Congo and a nickel mine in Indonesia, allows the country to have a steady supply of minerals and control the market.
China has also created a vertically integrated apparatus for the production of electric vehicles. The country refines 67% of the world’s lithium. It is also the leading manufacturer of batteries and battery components on the planet, responsible for 92% of anodes, 77% of cathode and 66 percent of the battery cells. The ability to scale quickly is largely due to lower labor costs and a significant number of domestic factory equipment manufacturers.
Currently producing 54% of the world’s electric cars, there is no doubt that China will retains most of the market share of the industry to the foreseeable future.
Be sure to read the entire word section New York Times to get a complete picture of why China is in this preeminent position.
