Thursday, June 8, 2023

China dominates US lithium battery market

Despite the fact that the product is classified as an “essential part” in the Treaty between Mexico, the United States and Canada (T-MEC), China accounts for nearly half of its share of total US imports of lithium-ion batteries. expanded dominance. As it is an essential part, T-MEC is bound to increase the Regional Value Content (VCR) to enjoy tariff preferences.

These VCR requirements range from 65 to 75% (or 75 to 85% under the transaction value method) of net cost for passenger car and light truck auto parts, and will be phased in over a period of time. Term of three years, expiring on July 1, 2023.

Of all the imports of lithium-ion batteries to the United States in 2022, China generated a total of $9.295 million, reaching a share of 66.9 percent.

The next external suppliers were South Korea ($1,290 million) and Japan ($980 million), while Mexico was ninth with $160 million. Lithium-ion production plants are already being built in the United States, as part of a series of strategic investments nationally to convert internal combustion cars to electric vehicles.

China made a big jump in its exports of ion batteries to the world, rising from $28.429 million in 2021 to $50.919 million in 2022, with the United States as the first destination. In the United States, it increased its share of total lithium-ion battery imports from 41.2% in 2012.

Currently, according to Sunrise New Energy Company, lithium batteries are widely used in new energy vehicles, energy storage, electric boats and smart homes, and the range of uses continues to expand, resulting in a $1 trillion market Is.

According to the Global EV Outlook, an annual publication that identifies and analyzes the latest developments in electric mobility around the world, the current battery supply chain is concentrated in China, which produces three-quarters of all lithium-ion batteries and 70% is the house of Cathode output capacity and 85% of anode output capacity (both are key components of the battery).

More than half of lithium, cobalt and graphite processing and refining capacity is located in China.

Worldwide, electric cars and buses are powered by one or more electric motors powered by rechargeable batteries, and have the potential to significantly reduce urban pollution by having zero tailpipe emissions.

Electric cars and buses are also expected to be less dependent on oil. Because of these advantages, governments around the world are devoting significant funds to funding the development of electric vehicles and their components. Due to these factors and the fact that lithium batteries are relatively environment-friendly, light in weight, and have large capacity, the demand for lithium batteries in the field of electric cars and buses is increasing.

World Nation News Desk
World Nation News Desk
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