RV_ Posted January 30 Report Share Posted January 30 Excellent article outlining our current dependence on Chinese raw materials and finished batteries. It shows how Europe should be free of China for their cars. Excerpt: "It’s well known that over the past decade, China has pretty much dominated the lithium-ion battery supply chain. It controls the supply of lithium as a raw material and virtually every step in the supply chain that goes into making that lithium suitable for making EV batteries. Why China has such nearly total command of the battery supply chain involves a detailed lesson in history and global politics. Suffice it to say most of the so-called western world was perfectly content to let China take the lead and China was only too happy to oblige. The Chinese government foresaw the opportunities available in the transition to electric transportation and heavily subsidized those who sought to exploit them. The rest of the world dozed serenely while China was rushing full speed ahead into the future. Now that the EV revolution is in full swing, the chickens have come home to roost. Nations are waking up to the reality that unless they act decisively now, they will be as much in thrall to China for batteries as they once were to OPEC for oil. A Call For A European Sovereignty Fund Environmental advocacy group Transport & Environment has published a new report entitled A European Response to US IRA: How Europe can use its soft and financial powers to build a successful electric vehicle value chain. The summary states: The European Green Deal is one of the world’s most ambitious climate policies to usher the European Union into the net zero economy by 2050. To happen, it will require a massive ramp up of technologies from wind turbines to electric car batteries, but the question is how much of the value will be captured by industry in Europe. The global race to lead the production of these cleantech, as well as raw materials that go into them, has been unfolding for a few years now. Europe has secured much commitment and investment in the area of electric cars (EV) and batteries already. Dozens of billions have poured into scaling EV manufacturing and batteries. Over half of all lithium-ion batteries on the EU market in 2022 were produced in Europe, with the continent projected to become the world’s second biggest battery cell manufacturer by the end of the decade. But the US Inflation Reduction Act (IRA), launched in August 2022, has changed the rules of the industrial game and might make companies re-prioritize the current announcements in Europe towards the US. For EVs and batteries, the risk is that the projects — and therefore Europe’s ambition — gets delayed. For critical metals and their processing, where Europe is only starting to catch up, the risk is that investments would simply go elsewhere. In just a few months since the launch of the US IRA, investments into battery factories, new mines, and electric vehicles have mushroomed in North America. This is in response to the requirement that 40% of battery metals need to come from the US and half of all battery components made in North America from 2024 for the full EV tax credit to apply. The battery supply chain of an electric car will receive up to $50 of subsidy per each kWh of battery capacity, or over a third of the total battery costs today." Much more in the article here: https://cleantechnica.com/2023/01/30/eu-could-end-reliance-on-chinese-battery-supply-chain-by-2030-says-te/ Quote Link to comment Share on other sites More sharing options...
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