Eric Peters wrote a thought piece in the Ionia Sentinel Standard that grabbed our attention. That’s because he highlighted most electric cars come from factories in the west. Whereas two-thirds of their batteries come from the east. Are we seeing a new OPEC emerging to dominate EV batteries, he wonders. Will it wield the same power as the Organization of Petroleum Exporting Countries?
Could This New OPEC Emerging Corner America’s Business?
Eric Peters speaks of a battery cartel developing that’s analogous to OPEC – the Organization of Petroleum Exporting Countries. He may have a point. China’s Contemporary Amperex Technology (CATL) already makes one third of all lithium-ion battery cells in the world.
In fact, all the top ten battery producers are in Asia which certainly strengthens his case. The 1972 oil crisis – when prices increased four times over – is proof positive how powerful an energy monopoly may be. It’s ironic this new OPEC emerging could affect North America’s efforts to free itself from the original OPEC’s petroleum. Will this be a case of out the frying pan into the fire, we wonder?
See Batteries Made at China’s Contemporary Amperex Technology
Why is North America So Dependent on the East’s EV Batteries?
Political will may be more powerful in the east, however 80% of lithium comes from Argentina, Bolivia and Chile in the west. Moreover, solar energy evaporates it out from brine solution so this is a clean safe process.
The devil in the detail is the other key components of lithium-ion batteries, cobalt, nickel and graphite which the west does not have in abundance. However the clincher is making EV batteries in the east costs less, because environmental regulations are simpler.
Eric Peters thinks we could counter the new OPEC emerging by relaxing environmental regulations in the U.S. However, this could obviate the “clean air” argument for EVs he says. This aspect deserves more investigation.
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Preview Image: CATL Lithium-Ion Technology
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