· 3 min read
illuminem summarises for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:
🗞️ Driving the news: China has added critical electric-vehicle (EV) battery technologies to its export control list, including materials production and nonferrous metal-processing technology
• The move is part of China's broader strategy to maintain dominance in the global EV market, particularly in areas where it already leads, such as battery manufacturing
• This development raises concerns in the U.S. about overdependence on China for essential raw materials and technology in the clean energy sector
🔭 The context: China’s dominance in the EV battery supply chain has been growing for years, with companies like CATL, a major supplier to U.S. automakers such as Tesla and Ford (see sustainability performance), solidifying Beijing's role in the global shift toward electric vehicles
• This latest move reflects increasing competition between China and the U.S. over control of critical clean energy technologies, with the U.S. wary of its reliance on Chinese supplies for EV manufacturing
🌍 Why it matters for the planet: As global demand for EVs increases, the ability to control the technologies and raw materials crucial to their production becomes more critical
• China’s tightening of export controls could slow the pace at which foreign automakers and countries can scale up EV production, potentially delaying global decarbonization efforts
• This move also adds urgency for the U.S. and other nations to diversify their supply chains and develop alternative technologies
⏭️ What's next: This shift is likely to prompt U.S. policymakers and companies to accelerate efforts to secure EV battery production capabilities domestically and invest in alternative sources of raw materials
• It could also lead to new negotiations or trade measures aimed at reducing the risk of supply chain disruptions
• As the race for EV leadership intensifies, both nations may increase investments in research and development to maintain technological advantages
💬 One quote: “China’s move ensures it maintains a stronghold on the global electric vehicle supply chain, which will have ripple effects on global EV adoption,” an unnamed industry expert
📈 One stat: China accounts for over 70% of global EV battery production capacity, according to Bloomberg New Energy Finance
See on illuminem's Data Hub™ the sustainability performance of CATL, and its peers BYD, and Panasonic
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