Will China win the electric car race. Money on CNN thinks so and we are inclined to agree. The Asian giant has an emerging generation z dead keen on exploring technology. And a government more than aware of the urgent need to cut back on carbon. But China has limited lithium resources which puts its electric car program at a disadvantage.
How Will China Win the Electric Car Race Then?
China is big. It has the world’s second largest economy, and a population of 1.379 billion. This gives it a huge tax base. We could say it is overflowing with money.
China needs to get capital out of the country to curb inflation. One strategy is to snap up vast lithium reserves elsewhere. So will China win the electric car race finally?
Observers are describing events as a “global battery arms race”. There could be storm clouds brewing. The U.S. Army is already using solar powered equipment. Some of this equipment may use lithium batteries. As things stand currently, whoever controls the global lithium market will control the electric car industry, and possibly more.
Skipping the Politics and Emotion: The Facts
Money on CNN reports China accounts for half of global electric and hybrid car sales. Thus it already has the infrastructure in place, and government money to invest in factories and charging stations.
This fits well with China’s goal to become a world leader, and seize the moral high ground from the west. China is stepping up purchases of lithium reserves. It has acquired meaningful stakes in Chile, Argentina, and Australia. A spokesperson told Money CNN, “We always strive to deepen economic cooperation with all countries in all fields, including in energy and auto sectors.”
Right now, the answer to the question will China win the electric car race is possibly, while western initiative lags. Of course, if lithium technology gives way to Fisker solid-state batteries, then that balance could change all over again.
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Preview Image: China’s Best Selling Electric Car
