China now dominates the world’s production of new generation batteries that are key to transitioning away from fossil fuels. These new batteries are essential for electric vehicles, power grids, mobile phones and laptop computers to name few.
According to the U.S. Department of Energy, if current trends continue, most of them will likely use Chinese batteries, a key element for transitioning away from fossil fuels, and most of those batteries will be lithium Ion because of their high energy per unit mass relative to other electrical energy storage systems.
For the foreseeable future, world will likely need to depend on Chinese supply chains to produce the batteries. Chinese chemical companies accounted for 80% of the world’s total output of raw materials for advanced batteries.
China is focused on controlling the world’s production of lithium ion batteries. Beijing government subsidies and quotas for EV sales appear to have incentivized efforts to corner the electric vehicle supply chain. Chinese entities now control nearly half of global lithium production and 60 percent of the electric battery production capacity. By 2030, Goldman Sachs predicts China could supply 60 percent of the world’s EVs.
Battery metals are becoming the new oil and supply chains the new pipelines. It is still early in this new energy era, and the victors are yet to be determined in the battery arms race. For now Bharat has to take the final lead as world resources are not for domination but for peaceful coexistence which is embedded in Bharat Culture and ethos of ‘Vasudaiva Kutumbakam’ (World is one Family).