Foreign media: China accounts for 70% of the global battery market

Foreign media: China battery markets are gradually going around the world

By 2020, China power (24.400, 0.10, 0.41%) of the battery or will account for 70% of the world's market share.

Cobalt is a kind of new batteries required metal, widely applied in the new energy vehicles core power unit, 3 c consumer electronics cobalt acid lithium batteries,special precision equipment, and many other fields. China as the world's largest refining and consumption countries, cobalt is only 1.11% of the global total. In recent years, domestic enterprises are cut into the upstream link of cobalt ore mining - cobalt reserves in the world's largest mining resources in Congo (gold) layout.

To this, on February 11, the Wall Street Journal published an article said that China is scored battery markets around the world, starting from Congo (gold), to mobile phones, new energy vehicles.

Screenshot image: Wall Street stories reported capture image: Wall Street

It can be seen in the screenshot, two people on the dusty road forward: a push bike, another to hold the car put the bag.

The Wall Street Journal said that this photo was taken in Congo (gold) Kolzig. Bicycle bag filled with grey-blue - cobalt ore. The two people in the photo are heading for a temporary market. Where there is a ticket, such as "mad jack", "li old big." the wholesaler.

Most of the wholesalers are Chinese. They will then sell to Chinese companies cobalt, shipped to China into rechargeable lithium-ion batteries for laptop computers, smartphones, and powered electric vehicles.

It is known that cobalt as important raw materials ternary battery is the core of new energy vehicles power unit. At present, the international market lock and scrambling for control of cobalt. As the production of electric cars to rise, the market demand for cobalt would be even greater. So far, China's commanding lead in the field.

It is reported that the global quality cobalt concentrate on Africa. Among them, the Congo (gold) production accounted for more than half the world, as the world's largest producer of cobalt, most of its cobalt were processed into cobalt sulfate. And China is the largest export market of Congo's cobalt (gold).

According to the cobalt traders DartonCommodities China enterprise imports about 94% of the cobalt from west African countries.

FirstCobaltCorp exploration company located in Toronto., chief executive of Trent Mayer (TrentMell) said: "for electric cars, the meaning of the Congo (gold) like Saudi Arabia to the meaning of the internal combustion engine. Chinese enterprises keenly aware of the Congo (gold) on the importance of the electric car, trying to control from cobalt ore mining to battery production of entire ecosystems."

From Congo to China

China is the world's largest electric car market. In 2011, the Chinese electric vehicles as one of the seven "strategic emerging industries". Development of the domestic battery industry become the important measures to promote the government, therefore, the Chinese government provides subsidy to domestic battery manufacturers.

Nowadays, Chinese enterprises have been the source of lithium-ion battery production dominates. CRUGroup commodities research institutions, according to data from the production of refined cobalt chemicals supply such companies in China accounts for about 77%, up from 67% in 2012. George Heppel CRU adviser said Chinese enterprises will soon have more than 90% market share.

According to the report, there are few like cobalt a surge in demand for goods, which is a by-product of copper and nickel. According to the U.S. geological survey data, since 2000, global cobalt production has more than doubled to about 123000 metric tons per year.

Researcher WoodMackenzie said global demand for cobalt will faster growth, is expected to reach 200000 tons by 2025. The electric car is a very important reason. Morgan Stanley estimates that 2014 electric cars in use of cobalt is about 1300 tons. Total this year is expected to increase to 11320 tons, to 2025 will increase to 62940 tons.

Such expectations in the past year have cobalt price more than doubled in London trading. According to Thomson Reuters data, since the end of 2015, cobalt prices rose more than 230%.

Become the center of electric cars need the support of cobalt

Prices, how to guarantee supply becomes the key. Citing traders as saying the existing 3, 40000 tonnes of cobalt from the Congo (gold) individual miners or Chinese companies, such as China molybdenum industry, Zhejiang Huayou cobalt industry (108.990, 3.64, 3.46%) and small industrial manufacturers.

In 2016, Luoyang Luanchuan molybdenum industry group (China Molybdenum) from the American mining giant Freeport (Freeport - McMoRanInc.)Buy a seat in the giant copper and cobalt ore in Congo (gold)., according to analysts this mine for Freeport in Finland, the production of raw materials, 20% of global production of cobalt sulfate, cobalt sulfate were produced in China.

Luoyang Luanchuan molybdenum industry group chief executive of overseas business KalidasMadhavpeddi said: "some of America's largest car company is very pleased with how we manage supply."

Photo: the Wall Street Journal image: the Wall Street Journal

GecaminesSA and Congo's state mining company China nonferrous mining group is to develop a rich cobalt ore. China nonferrous group owns a 51% stake is responsible for construction and operation, GecaminesSA owns a 49% stake in the Chinese company for $870 million in loans.

Darton commodities, according to data as strategic reserves, China has stockpiled around 5000 tonnes of cobalt, about 15 days, the world's supply. By contrast, China's petroleum reserve only enough the amount of global 3 days.

Cobalt27Capital company located in Toronto, chief executive of Anthony Miller, Nowitzki (Anthony Milewski) said: "it is clear that China wants to become the center of the electric car."

Headquarters is located in Fujian Ningde era of new energy technology co., LTD is one of the nation's largest electric car battery manufacturers. Photo: Bloomberg headquarters is located in Fujian Ningde era of new energy technology co., LTD is one of the nation's largest electric car battery manufacturers. Photo: Bloomberg

Reported that the development of the electric car a lot faster than many experts expected a few years ago, partly because of the global rapid development of lithium-ion battery key parts supply chain. It reduces the price, makes the battery manufacturers expand production.

Morgan Stanley said today's lithium-ion battery price is about $200 per kilowatt-hour, below the $1200 than 20 years ago. By early 2020, the price of the lithium ion battery will drop to $100.Bank of America analysts predicts that by 2030, the electric car will account for 34% of global auto sales.

In 2017, Saic gm an assembly plant in Liuzhou in Guangxi Zhuang autonomous region, production Baojun E100 all-electric battery cars. Photo: Reuters in 2017, Saic gm an assembly plant in Liuzhou in Guangxi Zhuang autonomous region, production Baojun E100 all-electric battery cars. Photo: Reuters

Although automobile manufacturing enterprises to the effort, but behind the car manufacturing battery supply chain is still in a state of fragmentation. The car makers ensure reliable supply. Such as: the first company is responsible for mining, the second company is mining, the third company is responsible for the production of batteries, a fourth company synthesizes battery module, 5 companies responsible for the battery module assemble into the cell. It can be said that Chinese companies are on power battery each link of the supply chain for major investments.

There are also some company and study the battery, experts say, technical improvement may make power battery production less dependent on cobalt, such as producing lower cobalt content or no rechargeable batteries containing cobalt.

For example, China is developing a nickel cobalt ternary manganese battery. Then do not contain cobalt batteries with higher energy density, so that the car moving further, take up space is smaller.

It is reported that the global battery capacity is about 110-gigawatt hours a year, mainly used in consumer electronics, electric vehicles, and electric power storage.

Last year, the Chinese government announced a plan in the next three to four years to double existing capacity, the battery manufacturing plant annual capacity of more than 150 gw - hour. Reported that this makes the Tesla, because in 2020, in the Nevada Gigafactory factory annual production capacity of only the level of gw - 35 hours.

But now, most of China's battery companies are still taking the bottom line: enterprise small and low-density battery production. It is reported that the Chinese government put forward the requirement of the battery energy density, which means that the future will have more nickel cobalt manganese battery.

According to a Forbes news report last August, at present China battery manufacturers are close to 150 large and small. Chinese domestic usage of lithium-ion battery brand electric vehicles in China has more than 90%.

In this case, China's domestic battery industry are also moving together development, more and more small battery enterprises gradually decline in sales of even face the risk of closing. At the same time, the battery is to BYD (52.960, 0.43, 0.82%), Ningde Hin high-tech era, countries (17.010, 0.21, 1.25%), and other battery giant represented Long DuanShi development.

The Wall Street Journal quoted IHSMarkit solar (5.090, 0.01, 0.20%) and deputy director of the energy storage research SamWilkinson said, if China can cobalt prices down, then the consumer will also benefit, the lithium-ion battery is fast becoming a daily necessity.

According to the national renewable energy laboratory data, the Chinese government to promote greatly reduces the price of solar cell components, make its cost from $2010 in 41000 to $16000.Built in 2010, 100 megawatts of solar energy device costs about $544 million, now as long as the cost of $111 million.

At present, about 65% of global solar module production in China, seven in 10 module manufacturers are Chinese companies. This result caused trade friction between China and the United States. Last month, the President of the United States, said Trump is against the import solar panels to impose a 30% tariff.

For China in the rapid development of the battery industry, some technical experts worry that too many prices could stifle innovation better batteries. Foreign relations committee Varun Sivaram technology experts said China controls the most global production of solar panels, wind turbines, and batteries." Really good have no chance to breakthrough technology, which makes me very worried."

According to Forbes news quoted experts predicted that by 2020, Chinese power battery or will make up 70% of the world's market share.

Source: the observer

The original title: foreign media: China is scored battery markets around the world, from Congo (gold) to mobile phones, new energy vehicles

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