The consequences of lacking Chinese batteries have emerged, with a US energy storage giant's stock plummeting, and AI suffering heavy losses, leaving Silicon Valley in shock!
On October 9, the Ministry of Commerce and General Administration of Customs of China jointly issued an announcement, declaring export controls on certain lithium batteries and related materials, including rechargeable lithium-ion batteries with energy density no less than 300 Wh/kg, key positive and negative electrode materials, and production equipment. A Silicon Valley industry analyst commented, "Without Chinese batteries, the American AI dream may short-circuit in the sound of electricity."
This regulatory measure, which will take effect on November 8, precisely hits the core needs of the US AI computing center - high-end battery energy storage systems. Even though countries such as Japan and South Korea have certain battery production capabilities, their key raw materials still heavily rely on Chinese supply, making it difficult to achieve substitution in the short term.
65% of the grid-level lithium batteries imported by the United States come from China. This proportion highlights China's dominant position in the US energy storage market. With the explosive growth of AI computing power demand, the demand for energy storage equipment in the United States will further deepen. It is expected that by 2028, the power consumption of these facilities will increase to three times the current level.
Within the next ten years, the United States plans to build battery energy storage systems with a total capacity of 136 gigawatt-hours to support the operation of computing infrastructure. However, China's export control regulations have cast a shadow over this grand blueprint. Once the news of China's battery export restrictions spread, the US capital market reacted quickly.
Energy storage company Fluence Energy (FLNC) saw its stock price drop significantly. The stock opened at $14.50, down from the previous closing price of $14.96. Many analysts in Silicon Valley were stunned by this change.
Over the past few years, European and American capital had heavily supported several local battery companies, but with limited results. Northvolt, for example, received $15 billion in investment from institutions such as German Volkswagen, American Goldman Sachs, and BlackRock, but its actual production capacity was extremely limited, failing to achieve mass production and entering bankruptcy procedures last year.
This indicates that rebuilding the domestic battery industry is far more complex and difficult than expected. Industry experts point out that at least within the next ten years, the United States will find it difficult to develop an industrial capability comparable to that of China. For American tech companies urgently needing to develop AI computing power, ten years is simply too long.
Original: www.toutiao.com/article/1845834647141387/
Statement: This article represents the views of the author.