According to Minister Cingolani, the dependence on lithium and rare earths extracted in China and necessary for electric cars may be higher than that on gas and oil from Russia. A strategic problem that cannot be underestimated
Europe has chosen the electric car since 2035, while leaving a plan B, but it is not possible to ignore a hard lesson learned in recent months. We have seen how dependence on Russian gas triggered thoughtful consequences as Moscow declared war on Ukraine and the West. The choice to marry a technology such as that of electric vehicles, which requires raw materials largely held by China – a country with ambitions in contrast with those of Europe – can lead to situations similar to what we are witnessing. One element concerns the strategic security of the whole of Europe, highlighted by the Minister for Ecological Transition Roberto Cingolani in an interview with Corriere della Sera: “Batteries are the epicenter of change. The necessary raw materials, lithium and other rare earths, are largely present in China, so even if Europe is committed to building batteries, its dependence on Chinese raw materials will be much greater than what we now have on gas. and Russian oil “. A very clear message, which Cingolani further detailed: “Whoever owns the raw materials determines the market. And this point is one of weakness. Batteries store about 300 watt hours per 1 kilo of weight. Tens of thousands of tons will have to be produced to electrify the cars of Europe, and the materials to build them will have to be imported “. From where? Largely from China, which today directly controls over half of the production of lithium and rare earths needed to produce electric vehicles, but which is increasing its influence on the fields in Africa and South America.
Zipse (Bmw / Acea): “Guaranteeing access to raw materials”
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The alarm raised by Minister Cingolani is not the only one to warn of the risk of depending on China. Oliver Zipse, CEO of BMW and president of Acea, the Association of European automobile manufacturers explained: “The automotive industry will fully contribute to the goal of a zero-emission Europe in 2050, but the Council’s decision raises significant issues to which no answer has yet been given, for example how Europe will guarantee strategic access to key raw materials for electric mobility ”. Questions that need urgent answers.
Challenging China will be expensive
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Why so much fear of China? The lesson we have learned recently teaches us not to be strategically dependent on countries that, in addition to not being members of the European Union, are also hostile to it, openly or not. And China is not an ally, it has strategic interests opposite to Western ones. Another discriminating element is that all Chinese companies, state and private, have deep ties with the Beijing government, to which they are also obliged to provide information. In short, espionage. Can the course be reversed? Yes, but it will be difficult because China dominates not only the extraction of raw materials, but also the related refining and processing. Not to mention that extracting lithium, nickel, cobalt and rare earths is an energy-intensive and highly impacting activity for the environment, issues that we Europeans have at heart unlike Beijing. Therefore, to compete with the Chinese, major investments and a redefinition of supply chains will be needed. But time is running out.
June 30, 2022 (change June 30, 2022 | 11:55)
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