China’s Dominance in Global Battery Minerals Trade

China holds a dominant position in the global battery supply chain, leading in imports and exports of key minerals like lithium, graphite, and cobalt. In 2023, it accounted for 44% of interregional mineral trade with significant production and processing capabilities. As demand for electric vehicles and energy technologies rises, China’s influence in this sector is expected to grow.

China continues to maintain a significant grip on the global battery supply chain, controlling substantial amounts of both imports and exports in battery minerals. In 2023, China imported nearly 12 million short tons of raw and processed battery minerals, equating to 44% of the total interregional trade. On the flip side, it exported roughly 11 million short tons of battery components and materials, holding 58% of this segment of the trade, according to recent data from the United Nations Comtrade.

This dominance extends to three essential battery minerals: graphite, lithium, and cobalt. These minerals, crucial for battery production, are either mined from nature or synthetically produced. With the rising global demand for electric vehicles and energy storage solutions, the importance of battery minerals skyrockets. Each stage of their lifecycle, from extraction to production and finally manufacturing, demonstrates a robust trading network.

When it comes to lithium, its extraction occurs via either brine or hard rock methods. Cobalt, on the other hand, is mainly a byproduct from nickel and copper mining, while graphite is derived from natural ore or synthesized from pitch and coke. Notably, in 2023, China produced approximately 18% of the world’s mined lithium, asserting control over about 25% of global mining capacity. Moreover, investments by Chinese companies in Argentina’s lithium triangle—a vital area for lithium production—further reinforce its position in the market.

On the graphite front, it was reported by the U.S. Geological Survey that China produced a staggering 79% of the world’s natural graphite in 2024. Meanwhile, when it comes to cobalt, Chinese companies dominate in Congo-Kinshasa, directly linked to over half of the planet’s cobalt production. The extensive control and production capabilities allow China to dominate the global raw battery mineral trade, accounting for 46% of this sector.

Australia, as the leading lithium producer, remains heavily dependent on China as its primary market. The trade between these regions, along with others in Asia and Oceania—including nations like Japan and India—comprises around 71% of the world’s raw battery mineral import activities.

Processing these minerals is where China also shines brightly; it processes more than 90% of the world’s graphite. In 2022, it claimed over two-thirds of the cobalt and lithium processing capacity worldwide. As imports of processed battery minerals surged in 2023, primarily cobalt from Africa, China’s global influence remains undeniable. However, it should be noted that export restrictions imposed on graphite products related to electrode manufacturing may impact future exports significantly.

Moving into battery materials, these processed minerals form the basis of various components depending on their chemical properties. In 2023, China controlled 53% of the global battery material export trade. This market dominance extends to the manufacturing sector, where it produced 85% of the world’s anodes, 82% of electrolytes, and 70% of cathodes. Not to be overlooked, in 2023, China was responsible for 74% of global battery pack and component exports.

Overall, China’s comprehensive control of the battery minerals landscape has profound implications as the world transitions towards greener energy alternatives. With its substantial production capacities and strategic investments, the nation is positioned to remain a pivotal player in the battery mineral trade for the foreseeable future.

In summary, China’s dominance over the global battery mineral market is evident at every phase of the supply chain. The nation not only leads in production and processing of critical minerals like lithium, graphite, and cobalt but also commands a significant share of the export market. As global demand for sustainable energy solutions grows, China’s role in shaping the future landscape of battery technology seems poised to strengthen even further.

Original Source: batteriesnews.com