Sou Hu Cai Jing·2025-11-02 05:12Core Insights - The U.S. Department of Energy's report highlights China's dominant position in the battery supply chain, acknowledging its control over key mineral processing, which is a result of years of industrial development [2][4][10] - China processes a significant portion of essential materials for electric vehicle batteries, including manganese, cobalt, graphite, lithium, and nickel, which directly impacts the global energy transition [2][4] Industry Overview - The report emphasizes the surge in global electric vehicle demand, with China having strategically acquired mining assets in Africa and South America since the 2010s to secure resource supply [4][10] - By 2025, China is projected to control a majority of cobalt mining and lead lithium resource development, marking a significant shift from previous reliance on imports [4][10] Technological Advancements - Chinese companies have improved their extraction and refining processes, achieving over 95% recovery efficiency in cobalt purification, which has lowered costs and increased production [4][10] - Automation in Chinese refining plants has doubled manganese production capacity since 2020, ensuring stable supply for electric vehicle production [6][10] Market Position - Chinese firms, such as CATL and BYD, dominate the battery production market, holding over 50% market share, significantly outpacing South Korean competitors [8][10] - CATL's production capacity has expanded from 10 GWh in 2017 to 500 GWh by 2025, while BYD's blade battery technology has improved safety and market share [8][10] Economic Impact - China's electric vehicle sales reached 5.4 million units in the first half of 2025, accounting for 47% of the domestic light vehicle market, reflecting a substantial increase from 2024 [10][12] - The country maintained its position as the world's largest electric vehicle market for ten consecutive years, with over 8 million units sold in the first nine months of 2025 [12][16] Export Dynamics - In the first nine months of 2025, China's electric vehicle exports were valued at nearly $48 billion, with significant growth in European and Asian markets [16][20] - Localized production strategies have led to a 70% localization rate for companies like BYD, contributing to competitive pricing in the global market [16][20] Recycling and Sustainability - China controls 78% of global battery recycling capacity, utilizing wet recovery technology to achieve a 90% metal extraction rate, significantly improving environmental sustainability [18][20] - The closed-loop system from mineral extraction to recycling has been enhanced through policy guidance, reducing investment return cycles to three years [18][20] Future Outlook - China aims to advance solid-state battery technology with a target energy density of 300 Wh/kg, further solidifying its leadership in the global energy transition [20] - The country's electric vehicle exports have reached 1.5 million units, representing 40% of the global market, reshaping the competitive landscape [20]