New Delhi: China, which is number one in the production and sale of passenger cars in the world, now has to fight with America with electric cars. However, to mitigate the decline in demand in the domestic market, the Chinese government also prepared a 10-point plan and targeted Americans to organize Chinese car companies. Chinese car and technology-based companies are working on rapid expansion plans in markets in other countries, including the US, but these Chinese companies have also expressed objections to the Joe Biden administration’s implementation of the Inflationary Reduction Act (IRA) in the US. This includes special incentives on electric models made in North America. Recently, two US House of Representatives committees reported that the partnership between Ford and Chinese battery company CATL is under investigation.
America is preparing to crack down on China’s occupation
The biggest thing is that China is not only taking over the passenger car market all over the world, but they also have a monopoly on the recycling market for electric car batteries. Ever since America started blocking its way, threatening its monopoly and trying to break its grip on the American recycling market. But he sees this effort as a ‘negative competitive mentality’.
Chile hit China
China’s state-run newspaper Global Times claimed in an editorial that many American politicians have an ‘anti-China’ mentality. It threatened America in a way that if Washington wanted to take advantage of China by destroying every technological advancement, it would have to suffer dire consequences in the future. According to the article, China will not just make shirts and socks like in its ancient times. Having this kind of ego is even more foolish.
The IRA will accelerate factory construction in America
Let us tell you that for the recycling of batteries used in electric vehicles in America, the government provides subsidies through the IRA (Inflation Reduction Act). Incentives through the IRA implemented by the Biden administration will accelerate the construction of factories in the United States, and vehicle companies will also be encouraged to research battery recycling, according to a Reuters report citing experts.
America will compete with China in battery recycling
The company reports that batteries used in electric vehicles have a lifespan of about 10 years or more. The coming era is going to be electric vehicles and the electric vehicles that are in use now are recycled when their batteries end up. China has established a monopoly in this recycling market, but after the implementation of the IRA by the Joe Biden administration, China may face stiff competition in this regard. This is because the IRA will provide subsidies as an incentive to set up a factory in the US and conduct research on battery recycling, and local entrepreneurs and researchers will increasingly participate in it.
By 2028, the market could reach $1800 million
According to research firm EMR, China accounts for the world’s largest amount of recycled electric vehicle batteries, and its market is expected to grow from $1100 million in 2022 to $1800 million by 2028. More importantly, lithium is mainly used in the seating of electric vehicles. Cobalt and nickel are also used in its other components. The market value of these minerals per car ranges from $1123 to $2246.
So will the battery material be damaged?
According to Louis Diaz, vice president of Canadian battery recycling firm Li-Cycle, demand for electric vehicles is expected to decline in the coming years at the same pace as the production of electric vehicles around the world is increasing. However, batteries are now being safely recycled with the equipment used in these vehicles. In this case, the recycled battery material will be treated as derived from waste under the IRA.
