A Number Of Chinese Enterprises To Participate In Competition For Lithium Resources To Occupy The Electric Car Market Heights

- Dec 11, 2017 -

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Japanese media said that Chinese companies are stepping up the acquisition of lithium resources around the world. The reason is that China, which owns the world's largest car market, promulgated a policy of transition from gasoline to pure electric vehicles (EVs). Companies need to ensure that the pure electric vehicle core components of the battery supply of raw materials. Affected by this, lithium prices rose to the highest level in history. British and Australian resource giant Rio Tinto and Japanese companies are also trying to get the rights of lithium resources, the global lithium battle or intensified.


According to "Nihon Keizai Shimbun" website reported on December 1, Beijing Automotive Group executives have set off to Chile, began negotiations with the Chilean Economic Development Corporation (Corfo). The council has an influence in resource development. Beiqi has proposed a policy of industrial rejuvenation from lithium production, battery manufacturing to pure electric vehicle assembly. Chengdu Tianqi Industrial Group, a large-scale lithium industry in China, also contributed 2% to SQM, a large-scale global lithium producer.


Why are these companies are aimed at Chile? It is reported that China is considered to consume more than 40% of the world's lithium, but according to the USGS data, China's lithium reserves account for only 20% of the world's total, while Chile's reserves account for half of the world's total. Three Seconds of lithium are concentrated in South America. Chinese companies wanting to ensure that lithium supplies are naturally targeted here.


Reported that South America through the drying method to extract salt lake salt, this method is more time-consuming, and Australia to take from the ore refining method. Although Australia accounts for only 10% of the world's reserves of lithium, its production is among the highest in the world, accounting for 40% due to its higher production efficiency than South America. In addition to South America, Chinese companies also receive resources from Australia.


Reported that China Great Wall Motor and BMW had previously launched a joint venture to produce pure electric vehicle negotiations. The company also decided to contribute 3.5% to Pilbara Minerals, an Australian lithium mine developer. The goal is to secure the right to buy lithium ore started mining in 2018. In addition, Tianqi Industrial also acquired Australia's Talison Lithium (Talison Lithium).

Reported that the reason for competing for lithium resources is China's automobile policy. In April, the Chinese government announced medium and long-term plans to increase sales of new energy vehicles such as pure electric vehicles (NEVs) from 500,000 in 2016 to 7 million in 2025. At the end of September, it announced that it will introduce regulations in 2019 that require automobile manufacturers to manufacture and sell a certain percentage of new energy vehicles. Japanese research firm Fuji Economic predicts that the global battery market for environmentally friendly vehicles such as new energy vehicles will be 1.4 trillion yen in 2016 and 6.6 trillion yen in 2025.


Discover business opportunities more than just Chinese companies. Japan Xinghe Group, which is engaged in medicine and other businesses, holds more than 2% of the shares in Chile's mining and chemical industry and Rio Tinto is also considered to be planning to invest in mining and chemical industry in Chile. Toyota Tsusho retains the rights to lithium in Argentina and Osaka and Henkel invest in Canadian companies planning to make Lithium in Mexico.


Source: China Battery Network

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