China’s initial push to develop its battery industry was driven by the need to reduce urban pollution, according to Iggy Tan, executive chair of Lithium Universe. This effort was supported by government regulations, incentives and investment.
But he and other panelists at the event noted some of the different challenges being faced in North America.
“We’ve got a project in Canada that must ensure [that there is] no Chinese investment, shareholders or technology,” Tan said, noting regulatory requirements intended to avoid any hint of Chinese involvement. He suggested that joint ventures, and learning from Chinese technology, could benefit the industry.
Joe Lowry, president of Global Lithium, emphasized the need for policies that enable competition. “If you want to play the game, you have to have a policy that allows you to play the game,” he said during a panel titled Decoding the China playbook.
Strategic investment and opportunities in the US
China was early to identify energy as a strategic industry, leading to significant investment in the lithium-ion battery supply chain, Lowry said.
Howard Margulis of MaxEn Capital Advisors added that Chinese banks and government support have been crucial in funding the sector, including projects outside China.
Both Lowry and Tan pointed out that China has invested strategically in upstream resources globally. This has ensured a steady supply of raw materials. The US could similarly invest strategically on areas such as lithium-rich manganese cathodes to gain a competitive edge, according to Steve LeVine, editor of The Electric.
There were, however, domestic projects emerging in the US that could bring great opportunities to the country, the audience heard.
The US should focus on building its own supply chain, rather than trying to replicate China’s model, Lowry said. The Arkansas Smackover formation provides an excellent opportunity to do so, he said.
China’s cooperation for lithium success
Collaboration with China will be crucial for success, the audience heard. “No one can think we [in the West] can do it all ourselves without the Asian manufacturing machine,” Margulis said. “We are going to have to cooperate somehow.”
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