Advertisement
Opinion | To overtake China in the EV market, the US needs to step hard on the accelerator
- Washington should double down on combining policy support, financial incentives and advances in technology, to reduce its reliance on China-sourced material
- As it strives to build a home-grown supply chain, investing in Canada’s critical minerals could be a game-changer
Reading Time:3 minutes
Why you can trust SCMP
16
The US attempt to pull away from China in the electric vehicle (EV) race is like navigating a road trip without a map, given the vast expanse of China’s routes through the critical minerals supply chain that is essential for EV battery production.
Advertisement
While the US is striving for enough “Made in America” EV batteries and is taking steps to reduce its dependency on Chinese-sourced critical minerals, its efforts need to be more assertive.
China stands at the forefront of the world’s critical minerals supply, accounting for about 60 per cent of worldwide production and 85 per cent of processing capacity. While the US mines and processes a considerable amount of such minerals, it still relies heavily on imports, especially from China.
For instance, the US and other countries are bracing for a supply squeeze and price surge in graphite after China announced export permit requirements for selected products starting next month. China’s decision – signalling tighter control over its dominant position in the market – will hit the US particularly hard, as it depends on the Chinese graphite typically used in the negative electrodes of EV batteries.
Advertisement
A report from the non-profit Carnegie Endowment for International Peace in May concluded that: “Excluding China from supplying critical minerals is simply not possible in the short term.”
Advertisement