China Leads the Way in EV Battery Technology

China Leads the Way in EV Battery Technology

The winner of the battery war will control thousands of jobs, dictate the future of greener energy, and even — to an extent — shape international relations.china ev battery technology

China has a decided advantage over foreign producers.china ev battery technology The country mines two-thirds of the world’s graphite, extracts most of its cobalt and controls a quarter of its lithium. Once these minerals are extracted, Chinese companies own most of the refineries that process them into the raw materials needed to make battery cells. And by controlling the supply chain, they are able to keep prices artificially low.

This advantage extends to the manufacturing of EV battery packs, which account for 35 to 50 percent of a vehicle’s cost.china ev battery technology The top five Chinese battery companies hold 45 percent of the global market for cell production. And they are leveraging their scale and technical expertise to expand into other parts of the value chain, including producing battery pack components.

Moreover, the emergence of new technologies is fueling the competitiveness of China’s battery companies.china ev battery technology For example, last year one of China’s top makers of EV batteries, Gotion High-Tech, unveiled a lithium-iron-manganese-phosphate (LMFP) battery that can power a vehicle for 1,000 kilometers on a single charge. The battery uses less expensive nickel and manganese than the more common nickel-cobalt types that are used in most electric vehicles on the market today, allowing manufacturers to cut costs while maintaining their vehicles’ driving ranges.

Another major development is the emergence of solid-state technology, which uses solid ceramic material instead of liquid electrolytes to create a more efficient battery that requires fewer and less polluting raw materials. CATL and others have announced plans to produce such a battery, called the Condensed Battery, that would reduce costs, improve performance, and cut manufacturing emissions by 24% compared to lithium-ion cells.

These developments are making it clear that Western automakers want to transition from gas-guzzling cars to electric ones, but they won’t be able to do so without Chinese-made batteries. That’s why Ford’s deal to build a battery plant in Michigan with CATL is so controversial.

While the US can’t ignore its dependence on foreign battery makers, it can use its diplomatic and economic leverage to help bring prices down and competition up. And that’s why it is important for the Trump administration to keep up its pressure on Beijing, even if it means renegotiating a trade agreement or suspending US tariffs on Chinese goods.

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