Lithium is an important electrochemical physical component of battery operation. Lithium-ion batteries store large amounts of energy and have very high energy density.
Lithium is the main ingredient in modern batteries and is critical to the green revolution. Some of the materials driving progress in the green energy revolution include lithium, graphite, cobalt, copper, rare earth elements, and manganese. Batteries work by storing energy and discharging it when needed. For example, lithium ions generate an electrical charge at the anode of a battery and release the stored electricity from the anode. In addition to its use in modern technology, lithium is also used in other industries and is an important resource for the glass and ceramics industries.
The United States is promoting a green revolution by encouraging the purchase and use of electric vehicles. Lithium is unevenly distributed around the world, and the U.S. has a severe shortage of lithium supplies. Chile has ample lithium reserves, and Australia, Argentina, Bolivia, and China have other major deposits.
Currently, China controls more than 50 percent of the world's lithium supply. In addition, China controls most of the world's supply of rare earth elements, chemical cobalt, and spherical graphite, which are critical to green energy technologies. Chinese lithium battery companies are committed to improving their overseas local support capabilities, expanding their production capacity, and enhancing their competitiveness in the global market.
China's lithium battery enterprises' overseas momentum is strong, 2023 lithium battery materials enterprises to accelerate progress. According to statistics, China has more than 20 lithium battery material enterprises to expand overseas projects, with a total investment amount of more than 142 billion yuan; of which nearly more than 20 enterprises have expanded overseas projects since 2023, with a total investment amount of more than 100 billion yuan. The number of expansion projects accounted for more than 54% of the total expansion projects in recent years, and the investment amount is more than 69%.
From the time point of view, in 2023, the number of enterprises and projects, as well as the amount of investment in the overseas layout of China's lithium enterprises, reached a record high, far exceeding the total number of projects in 2017-2022.
Analyzing the product categories, among the lithium battery material projects exported from China, the anode material accounts for the largest proportion, and more than 10 enterprises have announced overseas expansion projects, accounting for 60% of the number of Chinese lithium battery material enterprises going overseas.
From the analysis of China's overseas market project construction location, lithium materials enterprises' overseas planning capacity is mainly concentrated in Europe Asia, North & South America, and Africa.
Europe is the world's second-largest new energy vehicle market, but China's lithium materials enterprises see the largest number of markets. According to analysis, China has more than 10 enterprises in Europe to build lithium materials production base, the products cover anode materials, negative electrode materials, electrolytes, diaphragm, lithium copper foil, and all the important materials for lithium batteries.
Overseas markets that attract Chinese Li-ion material enterprises are South Korea, Indonesia, and other Asian countries, the United States, Chile, Brazil, and other North & South American countries. There are 10 Chinese Li-ion material companies that have built factories in Asia, half of which have built anode material factories in South Korea.
Well-known Chinese companies plan to build new production bases in the United States, with products covering cathode materials, anode materials, electrolytes, and diaphragms; BYD's overseas bases, which have rich lithium resources and convenient port conditions, are reportedly building lithium iron phosphate cathode material projects in Chile and Brazil.
According to lithium battery industry statistics, the overseas market to
2025, and 2026, is expected to have a 400GWh lithium battery capacity gap.
Overseas market demand for lithium battery material capacity still exists, and
will inevitably attract more Chinese lithium materials and equipment
enterprises to export overseas markets.
Lithium iron phosphate batteries are a key player in clean energy solutions:
1. NON-TOXIC AND SAFE CHEMISTRY: LiFePO4 is environmentally friendly as it does not contain toxic heavy metals. And, LiFePO4 batteries are safe.
2. Recyclable: The materials used in LiFePO4 batteries, including iron, lithium, and phosphorus, can be recycled. Reduces the need for raw materials and lowers energy consumption.
3. Long cycle life: LiFePO4 batteries typically have a longer cycle life, the less frequently they are replaced, reducing the waste stream, conserving resources, and minimizing environmental impact.
4. Energy efficiency: LiFePO4 batteries store and release energy with minimal losses. In renewable energy systems, LiFePO4 battery energy storage solutions facilitate the stabilization and balancing of renewable energy sources such as solar and wind.
5. Reduced Carbon Footprint: The use of LiFePO4 batteries in electric vehicles, and renewable energy storage systems helps to reduce the carbon footprint associated with traditional fossil fuel technologies. As more industries and individuals shift to cleaner energy solutions, the overall environmental impact will be positively affected.
6. Low self-discharge rate: LiFePO4 batteries have a low self-discharge rate. It stays charged longer when not in use, contributing to overall energy efficiency.
7. Reduced reliance on cobalt: LiFePO4 batteries contain almost no cobalt. Cobalt mining is environmentally problematic. Reducing reliance on cobalt helps to realize more sustainable and socially responsible energy storage solutions.
As technology advances and recycling infrastructure improves, the environmental impact of energy storage solutions such as LiFePO4 batteries can continue to be minimized