Steve Levine is a thought leader in the EV space and editor of The Electric, a newsletter that writes about next generation batteries, electric vehicles and autonomous driving for a growing audience of investors and start ups within the industry.
Is China Taking Over the Electric Vehicle market?
The United States and Europe are almost entirely reliant on China’s supply chain as it relates to battery resources for electric vehicles.
The country owns between 50-80 percent of all processing capacity and Levine says the country has invested over $100B into their battery metals supply in the last decade.
In 2010 China cut off its supply of rare earth metals to the rest of the world and Levine warns ‘that’s a possibility’ ahead, especially as the US clamps down on selling semi-conductor and chip making equipment to China.
Source: IEA, The New York Times
China Dominates Clean Energy Metals Processing
Source: IEA
Can The US Position Itself to be Less Vulnerable to China?
Levine claims The US is never going to dominate the market, but they can put themselves in a better position to serve their own electric vehicle industry.
Similar to China, Congress has now passed a $100B package that will ramp up their battery metals supply chain and lead to more processing and producing domestically.
Levine says while China may own the 2020’s as it relates to battery metals production, the US government’s latest investment will help the country become a key player in the space by 2030.
Tesla vs BYD- Who Will Dominate?
Tesla is still the golden child when it comes to dominating the EV space but China’s electric automaker BYD is catching up in terms of sales, which could surpass Tesla in the future.
Levine says the biggest hurdle facing the electric battery industry in the US is talent, “we have an embarrassing situation in the United States where the government is taking more risks than the industry.”
Hydrogen Cars Vs Electric Cars
As the deficit in lithium, nickel and other battery metal persists, Levine raises concern that electric automakers will only be able to meet a little over half of the projected demand for EV’s by the end of the decade, which could provide a unique opportunity for hydrogen vehicles.
So far, Toyota and VW are the only major automobile companies that see tailwinds for this market. “There will be a market for gasoline saving hybrids and plug in hybrid vehicles.
Toyota and VW are the only major automobile companies staying in that market, they are playing a smart game and there will be a long tail market for those vehicles.”
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