Lithium, Nickel
An increasing number of governments are controlling the supply of EV battery minerals such as lithium and nickel.
The examples include Chile. The Chilean government announced on April 20 that its lithium industry would be nationalized. Chile has the largest lithium reserves and is the second-largest lithium producer in the world.
Bolivia nationalized its lithium industry as early as in 2008. The La Rioja Province of Argentina designated lithium as a strategic material in January this year. Mexico declared lithium industry nationalization in February this year.
Indonesia, the largest nickel producer in the world, banned the export of nickel ore in 2019. In the Philippines, a tariff of up to 10 percent will be imposed on nickel ore. Major nickel producers, including Indonesia, Canada, and Australia, are planning to set up an organization in order to further increase their influence.
Under the circumstances, EV battery manufacturers are increasing investment in those mineral-rich countries. For example, BYD is planning to build a cathode material plant in Chile by investing US$290 million. LG Chem, LG Energy Solution, LX International, and POSCO Holdings formed a consortium last year in order to increase procurement from Indonesia.
At the same time, many companies in the industry are focusing on waste battery recycling, which can be helpful in procuring core minerals. According to market research firms, the waste battery recycling market is expected to grow from US$11.1 billion to US$174.1 billion from 2022 to 2040.