Chinese electric vehicle battery king urges Beijing to speed up lithium mining as global scramble for ‘new oil’ intensifies
- Lithium is in short supply as global switch to EVs drives demand for the rare earth metal used in batteries
- CATL chairman says that China must bolster lithium mining to ensure long-term supply chain security of the rare earth metal
Zeng Yuqun, chairman of China’s largest electric-vehicle (EV) battery manufacturer, has suggested that the Chinese government speed up “exploration and development” of lithium resources in the country to ensure supply chain security amid a global shortage of the rare earth metal as more people move to EVs.
Zeng, chairman of Contemporary Amperex Technology Limited (CATL), included lithium development as one of his proposals submitted to authorities in his capacity as a delegate of the Chinese People’s Political Consultative Conference (CPPCC), the country’s top political consultative body.
He said that lithium, the key metal used in the batteries that power EVs, must be included in China’s overall “national security” planning.
According to a summary of his proposals published by CATL, China is facing a bleak supply and demand situation for lithium and the country must work harder to ensure its supply chain security.
“Lithium resources are the core raw materials of lithium batteries, and it is of strategic significance to understand and ensure the supply of primary products for these batteries,” wrote Zeng.
CATL is now the world’s largest supplier of EV batteries thanks to Beijing’s encouragement of a domestic EV industry. CATL also provides batteries to US giant Tesla in China.