Battery arms race’: how China has monopolised the EVhttps://amp.theguardian.com/global-development/2021/nov/25/battery-arms-race-how-china-has-monopolised-the-electric-vehicle-industry
‘Battery arms race’: how China has monopolised the electric vehicle industry
Chinese companies dominate mining, battery and manufacturing sectors, and amid human rights concerns, Europe and the US are struggling to keep pace
Think of an electric car and the first name that comes to mind will probably be Tesla. The California company makes the world’s bestselling electric car and was recently valued at $1tn. But behind this US success story is a tale of China’s manufacturing might.
Tesla’s factory in Shanghai now produces more cars than its plant in California. Some of the batteries that drive them are Chinese-made and the minerals that power the batteries are largely refined and mined by Chinese companies.
As the world transitions to electric vehicles (EVs), companies are racing to secure and strengthen their positions in the battery supply chain, from mineral extraction and processing to battery and EV manufacturing.
The sector has seen a move towards vertical integration – where one company controls a number of steps along the supply chain – to guarantee supply and, in some cases, to improve transparency.
The Chinese presence is everywhere in Kolwezi, from casinos to hotels, to road expansion projects and mines. Photograph: Pete Pattisson In Europe too, companies are beginning to gain on China’s lead. By the end of the decade, the continent is expected to have 28 factories producing lithium-ion cells, with production capacity due to increase by 1440% from 2020 levels, according to Darton Commodities. That growth is being driven by companies such as Britishvolt in Northumberland and Sweden’s Northvolt, as well as Asian firms expanding production into Europe.
However, European investment in mining and the production of battery precursor and cathode materials is not keeping pace, says Andries Gerbens at Darton. “China will eventually become less dominant. Nonetheless, it will remain a big player,” he says.
The US, however, lags behind, despite a $174bn investment “to win the EV market”, announced as part of President Joe Biden’s $2tn infrastructure package in April, although this has since been slimmed down.
Simon Moores, CEO of Benchmark Mineral Intelligence told a US Senate committee in June that China is building the equivalent of one battery megafactory a week compared with one every four months in the US.
He warned: “A new global lithium-ion economy is being created, yet any ambitions for the United States to be a leader … continue to only creep forward and be outstripped by China and Europe.”
A spokesperson for CMOC in DRC says, “We are devoted to providing a safe, healthy, and decent work environment to all employees and attach great importance to protecting the rights of employees.” The spokesperson says the company is committed to observing international labour conventions and local labour laws, adding that all DRC national employees are members of trade unions.
Sicomines itself did not respond to multiple requests for comment. However, in a statement Huayou Cobalt says, “Sicomines, as a responsible company, strictly abides by DRC laws and regulations and respects human rights and fulfils best labour practice.”