Photo: GM
If the U.S. is to meet the goals laid out in the Paris Climate Agreement, companies must find a path to sourcing raw materials closer to home.
Sourcing materials and rare earth minerals closer to home will speed innovation, save production costs, and more importantly, ease the reliance on Chinese companies.
It is estimated that Chinese companies have upwards of three-quarters of global lithium-ion battery manufacturing capacity. This is in part, due to China's aggressive move into countries that have the largest supplies of necessary battery raw minerals.
China-based companies have taken interest in companies in lithium-rich Chile, one of two of the largest suppliers of raw lithium along with Australia. Similarly, cobalt, another critical battery material, comes predominantly from the Democratic Republic of Congo. Of the 19 cobalt mines in the country, 15 are owned or financed by Chinese companies.
Chinese dominance in supply chain is no more stark than in the refining of these raw materials. They are responsible for 80 percent of global battery raw material processing.
Two of North America's largest battery makers, GM and Panasonic, are making strides in a positive direction. GM's Ultium battery uses 70% less cobalt than its earlier batteries and work continues to reduce that number further. The company recently struck a $400 million (393 million euro) with Posco Chemical to build a plant in Quebec that will supply cathode-active material for GM's Ultium batteries. The plant will ultimately supply 40% of the battery's content.
For its part, as the primary battery maker for Tesla, Panasonic announced last month the construction of a $4 billion (3.93 billion euro) battery factory in Kansas. The company has committed to increased efforts to multi-source raw materials and has urged the U.S. Government to ease tariffs on overseas raw materials until the U.S. can get up to speed.
Aside from material sourcing and manufacturing, U.S. manufacturers need cooperation from the government regarding building material refining and recycling capabilities to further decrease its dependence on overseas suppliers.
It is estimated that Chinese companies have upwards of three-quarters of global lithium-ion battery manufacturing capacity. This is in part, due to China's aggressive move into countries that have the largest supplies of necessary battery raw minerals.
China-based companies have taken interest in companies in lithium-rich Chile, one of two of the largest suppliers of raw lithium along with Australia. Similarly, cobalt, another critical battery material, comes predominantly from the Democratic Republic of Congo. Of the 19 cobalt mines in the country, 15 are owned or financed by Chinese companies.
Chinese dominance in supply chain is no more stark than in the refining of these raw materials. They are responsible for 80 percent of global battery raw material processing.
Two of North America's largest battery makers, GM and Panasonic, are making strides in a positive direction. GM's Ultium battery uses 70% less cobalt than its earlier batteries and work continues to reduce that number further. The company recently struck a $400 million (393 million euro) with Posco Chemical to build a plant in Quebec that will supply cathode-active material for GM's Ultium batteries. The plant will ultimately supply 40% of the battery's content.
For its part, as the primary battery maker for Tesla, Panasonic announced last month the construction of a $4 billion (3.93 billion euro) battery factory in Kansas. The company has committed to increased efforts to multi-source raw materials and has urged the U.S. Government to ease tariffs on overseas raw materials until the U.S. can get up to speed.
Aside from material sourcing and manufacturing, U.S. manufacturers need cooperation from the government regarding building material refining and recycling capabilities to further decrease its dependence on overseas suppliers.
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