Foreign Media: China's Global Consumption Of Ultra-Si Cheng Lithium Aimed At South America For Lithium Resources

- Dec 07, 2017 -

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.

Japan's Nihon Keizai Shimbun reported on December 1 that China is considered to have consumed more than 40% of the world's lithium, but data from the U.S. Geological Survey show that China's lithium reserves account for only 20% of the world's total, while Chile's reserves account for Half of the world, two thirds of the world's 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 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 by 2025 from 500,000 in 2016 to 7 million in 2016.

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 Forecast, the global battery market for environmentally friendly vehicles such as new energy vehicles in the year 1.4 trillion yen (1 yen or about 0.06 yuan - Ben Wang Note), by 2025 will be increased to 6.6 trillion yen.

Data from Asian Metal that investigated the Chinese metal market showed that the price of lithium carbonate in China, the indicator for lithium trading, rose to 159,000 yuan per tonne in mid-November, setting a record high.

Reported that although the development of a new generation of batteries to replace lithium batteries continue to advance, but it is considered to be practical until after 2020. In one move to pure electric vehicles in recent years, the lithium resource war will continue.

Source: China Battery Network

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