EV Batteries are the Next Point of Tension Between China and the US

upstart writes:

And how Chinese companies came to dominate battery manufacturing:

Among the many factors at play, China's control of refined materials for battery cells and its advanced battery-making technologies are particularly important. So important that Western automakers who want to transition out of gas cars won't be able to do it without turning to Chinese-made batteries. That's why Ford has been planning for a long time to build a battery plant with Chinese battery giant CATL, the world's largest manufacturer of lithium batteries.

[...] But why does Ford feel it's necessary to work with CATL to make EV batteries in the first place? The simple answer is that Chinese companies have managed to make good-quality batteries in large quantities and at a low cost. It will be commercially unviable to avoid using Chinese batteries, and it will take a long time for domestic battery companies to rival the size and efficiency of CATL.

As my colleague Casey Crownhart explained last week, Ford's new plant will focus on making LFP batteries, which use iron rather than the cobalt and nickel used in the other main type of lithium battery, known as NMC. Compared with NMC batteries, which are widely used to make EVs in the US and Europe, LFP batteries cost less, have a longer life cycle, and are safer when it comes to the possibility of catching fire.

But just a few years ago, LFP batteries were considered an obsolete technology that would never rival NMC batteries in energy density. It was Chinese companies, particularly CATL, that changed this consensus through advanced research. "That's purely down to the innovation within Chinese cell makers," Max Reid, senior research analyst in EV and battery supply chain services at the global research firm Wood Mackenzie, tells me. "And that has brought Chinese EV battery [companies] to the front line, the tier-one companies."

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