Russian media: The United States has lost another global market!

When other countries are trying to catch up with China, this Asian giant always takes two steps ahead.

On May 25th, the article was published in Russia's "China Today".

The U.S. has failed, and China will not give up its leading position in battery production.

According to Union Rayo estimates, Chinese manufacturers collectively control more than 80% of the global market share for electric vehicle lithium-ion batteries.

According to the Financial Times, battery manufacturer CATL recently listed on the Hong Kong Stock Exchange, causing its market value to soar by 16% immediately.

In April this year, the U.S. House Select Committee on China sent a letter to major banks: do not invest in CATL's stocks.

However, banks (including JPMorgan Chase and Bank of America) ignored this warning because the profits were too large.

Union Rayo emphasized that China's leadership is not accidental.

Last year, China produced batteries with a total capacity of 1400 gigawatt-hours. This is equivalent to 60 years of power generation from the world's largest power plant, the Three Gorges Dam (which is also in China).

One of the most strategically significant solutions is the use of LFP (lithium-iron-phosphate) batteries. Although these batteries consume less energy than nickel or cobalt, they are cheaper, safer, and easier to manufacture.

China encourages the use of these batteries in public transportation and has been funding scientific development since 2016 to improve their characteristics.

All developments in China's battery sector are immediately granted patents. Therefore, Chinese companies can use these technologies without paying license fees, significantly reducing costs.

Another key advantage for China is that it controls a large amount of lithium, iron, and other critical minerals.

This allows them to obtain raw materials at lower prices. Union Rayo wrote that even Americans who have reached rare earth mining agreements in Ukraine will still be at a loss.

After all, the supply chain is too long, which inevitably affects the price of raw materials; Chinese raw materials will remain more competitive.

China is also the largest electric vehicle market globally. Relying solely on domestic demand, China can sustain the entire battery industry, which is another factor driving continuous technological progress.

Even executives from the largest Western companies (such as General Motors) recognize that the U.S. and Europe will not be able to catch up with Chinese enterprises in electric vehicles and battery technology.

More than half of China's new cars are already equipped with fast charging devices. Chinese companies are announcing new, more advanced batteries, such as those that can be fully charged in 5 minutes.

Despite Donald Trump's trade war with China, more pragmatic American businessmen are not seeking confrontation but strengthening ties with China.

Ford has begun licensing advanced technologies developed by CATL for car production. Tesla, Mercedes-Benz, BMW, and Volkswagen have already collaborated with Chinese companies.

This makes sense: if you cannot win the battle, at least try to gain some benefits.

Original source: https://www.toutiao.com/article/1833134550451211/

Disclaimer: The article represents the views of the author alone.