Downstream Tests For China's EV Supply Chains
Date
10/26/2023 6:13:33 AM
(MENAFN- Asia Times) In March 2023, the Iranian government claimed to have discovered a massive lithium deposit, in the magnitude of 8.5 million tons. China is the largest consumer of lithium, which it mostly imports from Australia, the world's biggest exporter of lithium. In 2020, it was responsible for almost half of the lithium available in the world.
More than 90% of Australia's lithium is exported to China,
filling 85 % of the latter's need. In the first half of 2023, Australia's revenue from selling lithium concentrate to China exceeded US$7 billion.
Lithium is a key component of electric vehicle (EV) batteries and given China's drive to become the world's leading EV producer, its demand for lithium will only increase –
Australia's lithium export
revenue was estimated to
more than triple
over 2022–2023.
But
Iran's lithium discovery
might challenge Australia's dominance in the
Chinese market . China is the largest export destination of both Iran and Australia.
In 2022, Australia sent more than one-fourth of its exports to China, valued at $104 billion. Iran has been an important supplier of crude oil to China, sending more than 750 thousand barrels per day, over one-quarter of its production.
As the world's car industry rapidly transitions to EVs, the demand for lithium as a key ingredient of EV batteries surges - the demand for batteries was responsible for almost 80% of all lithium use in 2022. This has implications for other countries that aspire to play key roles in the industry, such as the world's largest producer of nickel , Indonesia.
Indonesia has imposed a ban on raw nickel exports. Image: Facebook
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