China has outbid leading nations like the U.S. and others in the global race to acquire essential elements for manufacturing electric cars. The country has become a global leader for electric and hybrid cars, accounting for nearly half of the global sales.
The world’s second-biggest economy is inclined to fortify the electric and hybrid car industry within its borders. Beijing has been planning to acquire more lithium through imports.
In an interview to CNBC in an interview, Managing Director at Benchmark Mineral Intelligence, Simon Moores, said, “Lithium is coming of age in a big way. It’s the core ingredient to 99 percent of electric vehicles and as a result, demand is going through the roof.”
The demand for electric vehicles has grown tremendously, and Chinese firms have been eyeing to procure supplies of Lithium to cater to the requirement.
Lithium, being the most vital element for electric cars, has shown great potential to the Chinese players. In the last 18 months, the demand for the alkali metal has skyrocketed.
Governments and auto manufacturers across the world have taken necessary steps to implements plans for electric vehicles and curtail the use of combustion engines. Lithium-ion batteries are capable of producing more electricity per unit compared to conventional batteries.
“China is not just focusing on electric vehicle manufacturing, but also buying up lithium projects and supporting the growth of battery producers, so they can control even more of the electric vehicle supply chain,” said Jay Jacobs, Director of Research at Global X to CNBC.
This definitely indicates that China not only has plans to establish itself as a global leader in the electric vehicle industry, but also plans to control its electric supply chain.