2023-06-21 07:00:00
China is driving a global campaign to secure lithium. Media such as “Business insider” are now reporting that with the boom in electric cars and the associated increase in demand for batteries, there is a global race for the raw material that is indispensable for the future of e-mobility. By 2025, China might then control around a third of the world’s lithium supply.
The Chinese lithium offensive comes from the top. Three years ago, head of state and party leader Xi Jinping said: “We have to increase the dependence of international supply chains on China and create effective countermeasures and deterrents once morest foreigners who want to artificially interrupt supplies to China.” Since then, Chinese companies have been investing billions in countries in Latin America and Africa to secure deposits.
“Dependency on China for lithium is a major risk for German companies,” warns Kiel economics professor Tobias Heidland, director of the International Development Research Center at the IfW economic research institute. “Should there be greater tensions, they might lose access to crucial intermediate products.” In view of the aggressive actions of the Chinese, Heidland calls for greater diversification of German industry.
EU Commission President Ursula von der Leyen also made it clear in March of this year that the EU obtains 97 percent of its lithium from China. “The batteries that power our electric cars will increase the need for lithium 17-fold by 2050,” said von der Leyen.
The Chinese investors are using their generally lower requirements for environmental and human rights standards as a positive argument with the governments in South America. There are “fewer regulations, fewer lectures on environmental pollution and fewer complaints from non-governmental organizations,” said Ryan Berg of the US Center for Strategic and International Studies. (awm)
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