Is 3rd WORLD WAR STARTED?

EVs are becoming a popular choice as an environmentally-friendly option for transportation. They generate fewer emissions and use energy more efficiently than gasoline-powered cars. The advantages of EVs for the environment and cost savings are making them more and more popular. They can run on renewable energy sources and emit fewer emissions than gasoline-powered vehicles. The advantages of EVs don't end there, though. Additionally, they provide a quieter and smoother ride. Additionally, as battery technology develops, EVs' driving range expands, making them a feasible alternative for longer journeys.

The largest market sector for electric vehicles is the passenger car segment, and throughout the projected period, this market is anticipated to increase significantly. The main reasons driving the market are the availability of a wide choice of models, improved technology, rising customer awareness, and the availability of subsidies and tax breaks. The market has seen considerable competition from major EV producers, including Tesla, BYD, BMW, Volkswagen, Nissan, Toyota, Honda, Hyundai, Daimler, Volvo, GM, SAIC, and others.

Between 2019 and 2028, the market for electric vehicle (EV) batteries is anticipated to increase from $17 billion to more than $95 billion. Companies that make the batteries that power EVs have experienced significant growth in response to the growing desire to decarbonize the transportation sector. There are intriguing concerns regarding how geopolitics and these supply networks will be impacted by the inevitable transition from fossil fuels to renewable energy. As the market for clean energy metals expands, new world powers might materialize in the struggle to grab the raw materials required for the green revolution.

#China is now in the lead.

Currently, Chinese firms account for 56% of the market for EV batteries, followed by Korean firms (26%) and Japanese producers (10%). In 2022, CATL, the top battery provider, increased its market share from 32% in 2021 to 34%. The Chinese business manufactures one-third of the EV batteries used worldwide. Tesla, Peugeot, Hyundai, Honda, BMW, Toyota, Volkswagen, and Volvo all receive lithium-ion batteries from CATL. LG Energy Solution remains the second-biggest battery manufacturer with 14% market share.

BYD replaced Panasonic in third place after nearly doubling its market share in the last year. The firm, which is funded by Warren Buffett, makes batteries that are sold in marketplaces all over the world while ranking as the third-largest carmaker in the world by market worth. Recent sales data indicate that BYD will surpass LG Energy Solution in market share within the next several months or years. For electric vehicles, lithium is frequently referred to as "white gold." The thin metal is crucial to the cathodes of all varieties of lithium-ion batteries that drive EVs. As a result, the current increase in EV adoption has caused lithium output to reach new highs.

#The Largest Lithium Producers Over Time

In sharp contrast to now, the U.S. was the world's top lithium producer in the 1990s. In actuality, the U.S. produced more than one-third of the world's lithium in 1995. With a rise in production in the ‘Salar de Atacama’, one of the richest lithium brine reserves in the world, Chile overtook China as the largest producer from then on until 2010. In 2021, the volume of lithium produced globally will have topped 100,000 tons, quadrupling from 2010. Furthermore, only three nations contributed for almost 90% of it. One of the main factors for the exponential rise in lithium manufacturing has been batteries. However, how much lithium is used by batteries and how much is used for other purposes?

The ultimate applications for the metal were very different from what they are now until electric vehicles (EVs) and lithium-ion batteries revolutionized the demand for the metal. Glass and ceramics consumed 31% more lithium in 2010 than any other material. Lithium carbonate improves strength and decreases thermal expansion in ceramic and glass products, which is frequently necessary for contemporary glass-ceramic cooktops. Along with other less well-known applications, lithium is also utilized to create lubrication greases for the transportation, steel, and aviation sectors.

Lithium demand has changed due to its application in sustainable energy technologies, in addition to rising. Since 2010, the demand for batteries has nearly quadrupled the amount of lithium that was previously used mostly for ceramics. According to the USGS Mineral Commodities Summary (2022), between 2000 and 2010, the average annual rise in lithium usage in batteries was 20%. As battery use increased by 107% yearly during the ensuing ten years, overall lithium consumption grew by an average of 27% annually. Other significant but lesser-known uses for lightweight metal are also noteworthy. For instance, almost 70% of the world's production of grease for technical usage is made up of lubricating greases based on lithium. Additionally, it is used in the manufacturing of colour pigments, the melting of aluminium, the treatment of gas and air, and die casting.

Large manufacturers, including Volkswagen, GM, and Ford, intend to release a number of new EV models in response to the commitments made by several nations to phase out internal combustion engine (ICE) cars by 2030. Since batteries are predicted to consume 84% of all lithium produced in 2025, it is probable that lithium consumption, especially in batteries, will continue to climb as EV demand rises. Only Australia generates 52% of the lithium used worldwide. Australian lithium is obtained through hard-rock mining for the mineral ‘spodumene’, as opposed to Chile, where lithium is recovered from brines. The demand for lithium is anticipated to rise to 1.5 million tons of lithium carbonate equivalent (LCE) by 2025 and over 3 million tons by 2030 as the world manufactures more batteries and electric vehicles.

540,000 tons of LCE were generated globally in 2021, for comparison. According to the aforementioned demand forecasts, the output must quadruple by 2025 and almost double by 2030. Even though the supply has been growing exponentially, it might take six to more than 15 years for new lithium projects to start producing. As a result, it is anticipated that the lithium market will experience a deficit over the coming years.

China’s Dominance in Battery Manufacturing (2022-2027)

Many countries have made battery production a top priority as the world prepares for the age of electric vehicles. China, though, is by far in the lead since it entered the competition for batteries early. China, the world's third-largest producer, is well-established in the lithium industry. Over the past ten years, Chinese corporations have bought lithium assets worth over $5.6 billion in nations including Chile, Canada, and Australia, in addition to establishing local mines.

When it comes to processing processes, China is the leading economic power. Around 35% of nickel, 58% of lithium, 65% of cobalt, and 87% of rare earth elements are refined in the nation. 60% of the rare earth elements needed in high-tech equipment like computers and cell phones are produced in China. Additionally, the nation holds a 13% portion of the market for lithium production, which is still led by Chile (22%), and Australia (52%). The highly reactive substance is essential for creating rechargeable batteries for electric cars, computers, and mobile devices.

While cobalt processing is dominated by China, the Democratic Republic of the Congo is where the majority of the metal is actually mined (DRC). Nevertheless, a data study by The New York Times and Benchmark Mineral Intelligence found that 15 of the 17 industrial cobalt activities in the DRC are owned by Chinese companies. Unfortunately, due to allegations of corruption and a lack of oversight, the DRC's cobalt output has come under fire.

A portion of the cobalt produced in the Congo originates from unregulated artisanal miners. An estimated 40,000 of the 255,000 artisanal miners in the Democratic Republic of the Congo are children, some as young as six. Battery production capacity by nation in 2022 and 2027 using the data and forecasts behind “Bloomberg NEF”'s lithium-ion supply chain rankings, demonstrating the scope of China's battery supremacy.

#the Blood Batteries#

Six of the top 10 battery producers in the world are located in China, which has a production capacity of about 900 gigawatt-hours, or 77% of the worldwide total. Vertical integration throughout the rest of the EV supply chain, from metal mining to EV production, is what gives China the competitive edge in the battery market. With 52% of all EV sales expected to occur there in 2021, it's also the biggest EV market.

Poland is ranked second, but its capacity is less than one-tenth that of China. It also houses the Wroclaw giga factory of LG Energy Solution, the biggest of its kind in Europe and one of the biggest in the world. In all, the capacity for producing batteries worldwide among 2022 was just 14% in European nations (including non-EU members).

#Will using electric vehicles actually led to a cleaner environment? #

One of the biggest issues confronting the globe today is greenhouse gases (GHG) emissions. Oil-powered cars in the transportation sector are a major source of GHG. According to lead metals expert Johann Wiebe, it is estimated that the automobile industry contributes between 15 and 25 percent of harmful pollutants such as nitrogen oxide, particulate matter, and carbon dioxide.

According to World Energy Outlook and IEA, around 37% of the world's electricity is produced by coal-burning power plants. But over the past few years, those figures have been declining. Globally, overall coal demand has decreased from its high in 2014 as a result of governments starting to take steps to reduce greenhouse gases emissions, which has also been aided by inexpensive natural gas and local pollution concerns. But for every step taken to encourage the development of clean automobiles and the energy sources that will power them, a chain of events takes place that has an impact on everything from the procurement of raw materials to consumer behaviour and the creation of new technologies.

The demand for electricity from EVs will exponentially increase as automakers scale up manufacturing for ever more EVs. By 2040, energy demand might climb 300 times more due to the boom in EV adoption. To support that development, the present grid will need to undergo major change, spurring a wave of new innovation in wind and solar power that will ultimately lead to a reduction in the world's dependency on coal and an increase in the use of clean energy alternatives. Despite being the world’s biggest carbon polluter, China is also the largest producer of most of the world’s critical minerals for the green revolution.

Over the next several decades, it is anticipated that renewable energy sources would phase out fossil fuels, which have a downstream impact on the demand for raw materials. Increased demand for green energy necessitates additional clean energy metals to construct green energy technologies such as wind turbines, solar panels, and batteries.