Battery production in China is more integrated than in the United States or Europe, given China’s leading role in upstream stages of the supply chain. China represents nearly 90% of global installed cathode active material manufacturing capacity and over 97% of anode active material manufacturing capacity today.
China will continue to be the major supplier of battery-grade raw materials over 2030, even though global supply of these materials will be increasingly diversified. Possible supply shortages will remain.
As part of its efforts to promote advanced manufacturing, China removed or reduced import taxes on key raw materials essential for EV battery production. This includes the removal of import taxes on lithium chloride, lithium carbonate, nickel sulphate, and cobalt carbonate, all previously set at 5%.
This includes the removal of import taxes on lithium chloride, lithium carbonate, nickel sulphate, and cobalt carbonate, all previously set at 5%. Additionally, China eliminated the 3% import tax on low-arsenic fluorite, a crucial material for electrolyte production in lithium-ion batteries.
The Chinese Ministry of Finance announced on 21 December 2023 that the adjusted tariffs on selected metals, including aluminium and battery metals, would take effect from 1 January 2024. As part of its efforts to promote advanced manufacturing, China removed or reduced import taxes on key raw materials essential for EV battery production.
The global demand for raw materials for batteries such as nickel, graphite and lithium is projected to increase in 2040 by 20, 19 and 14 times, respectively, compared to 2020. China will continue to be the major supplier of battery-grade raw materials over 2030, even though global supply of these materials will be increasingly diversified.