Can the world make an electric car battery without China?

19 May, 2023 — The competition to make batteries for electric cars is crucial for economic and geopolitical advantages, and China is currently the only clear winner.
The dominance of China in the production of electric car batteries poses significant challenges for the rest of the world — despite Western investments, China’s lead in mining rare minerals, training engineers, and building large factories makes it unlikely for other countries to catch up for decades. 
 By 2030, China is projected to produce more than twice as many batteries as all other countries combined. China controls various stages of lithium-ion battery production, from mining raw materials to manufacturing the cars, giving them a strategic advantage. China’s ownership of cobalt mines in Congo and significant mining operations for lithium and other minerals further solidifies its control over the supply chain.
 Chinese refineries benefit from lower costs, larger volumes, and less stringent environmental regulations, causing refineries elsewhere to close. China’s dominance extends to battery components such as cathodes, anodes, separators, and electrolytes. Chinese companies have become the largest battery producers and have a significant head start due to years of state funding and experience.
 The complexity of battery assembly and China’s ability to build factories at lower costs also contribute to its advantage. The United States and other Western countries face challenges in terms of limited processing capability, long lead times to establish refineries, and the need for partnerships with Chinese companies to access key technologies. Chinese investments in research, government contracts, and subsidies have propelled the country to lead in production and design.
 Experts emphasize that cooperation with China is crucial for any country to succeed in the electric vehicle industry. Achieving self-reliance in the battery supply chain is deemed nearly impossible, and companies worldwide will seek partnerships with Chinese manufacturers to enter or expand in the industry.