Battery arms race17 Feb 2019 13:12
SP Angel . Morning View . Global battery arms race declared in Congress hearing ‘Global battery arms race’ declared in Congress hearing The US has been declared as a by-stander in the global battery arms race by Benchmark Mineral Intelligence MD Simon Moore during the US 116th Congress hearing which examines the outlook for energy mineral markets. Since the last testimony 14 months prior, global lithium-ion battery Megafactories have grown from 17 to 70. In terms of GWh’s capacity has exploded from 289GWh to 1,549GWh – the equivalent of 22m pure EVs. The scale of growth is recognised as ‘unprecedented’, and will have a structural impact on the raw material markets which feed the growth. For lithium alone, consumption specific to the battery industry is set to rise by a factor of 9. Cobalt, Nickel and graphite anodes are expected to climb 6x, 5x and 9x respectively. Critical minerals have been recognised as a risk to national security with non-US nations controlling long-term, reliable supply. At the mine level the US produces equivalent – nickel 0%, cobalt 0%, graphite 0% and lithium 1% At the chemical level the US produces equivalent – nickel 0%, cobalt 0%, graphite 0% and lithium 7% Global battery capacity currently sits at 9%. However, capacity continues to be swamped by China who are expected to control 65% battery manufacturing capacity by 2028. Key statistics only serve to highlight the significant control China has on the industrial power for the 21st Century auto and energy industries. Sustained and major investment is required to balance the supply chain for battery metals.
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