New Delhi : China, which is number one in manufacturing and selling passenger cars around the world, now has to fight with America over electric cars. However, to reduce the decline in demand in the domestic market, the Chinese government has also prepared a 10-point plan and has also targeted the Americans to organize Chinese car companies. Chinese car and technology-based companies are working on plans to expand rapidly in the markets of other countries including the US, but these Chinese companies have also expressed objections to the implementation of the Inflation Reduction Act (IRA) by the Joe Biden administration in the US. This includes special incentives on electric models manufactured in North America. Recently, two US House of Representatives committees stated that the partnership between Ford and Chinese battery company CATL is under investigation.
America has made preparations to make a dent in China’s occupation
The biggest thing is that China is not only occupying the passenger car market all over the world, but it also has a monopoly on the recycling market of batteries used in electric cars. Ever since America has started obstructing its path, then it has started threatening its monopoly and America has started trying to break its hold on the recycling market. However, he sees this effort as a ‘negative competitive mindset’.
Chili hit China
China’s official newspaper Global Times has claimed in an editorial that many American politicians have an ‘anti-China’ mindset. In this, America was threatened in a way that if Washington wants to take advantage of it by destroying every technological progress in China, then it will have to face serious consequences in future. It has been written in the article that China is not going to make only shirts and socks like its ancient era. If this type of ego is there, it is even more foolish.
IRA will accelerate the construction of factories in America
Let us tell you that for the recycling of batteries used in electric vehicles in America, subsidy is given by the government through IRA (Inflation Reduction Act). According to a report by the news agency Reuters, quoting experts, the incentive through the IRA implemented by the Biden administration will accelerate the construction of factories in the US and vehicle companies will also be encouraged to research batteries for recycling.
America will compete with China in battery recycling
The agency’s report states that the life of batteries used in electric vehicles is about 10 years or more. The coming era is going to be of electric vehicles and the electric vehicles that are being used now are recycled when their battery life is over. China’s monopoly is established on this recycling market, but after the implementation of the IRA by the Joe Biden administration, China may face a tough competition in this matter. The reason for this is that subsidy will be given as an incentive to set up a factory in the US through IRA and research on battery recycling, and local entrepreneurs and researchers will increasingly participate in this.
By 2028, the market can reach up to $ 18 billion
According to the research firm EMR, the amount of batteries used in electric vehicles in the whole world is recycled only in China and its market can increase from $ 1100 million in 2022 to $ 1800 million by 2028. The biggest thing is that lithium is used prominently in the seating of electric vehicles. Apart from this, cobalt and nickel are also used in its other components. The market value of these minerals in a car ranges from $1123 to $2246.
So will the battery material become waste?
According to Louis Diaz, vice president of Canadian battery recycling firm Li-Cycle, the pace at which the production of electric vehicles is increasing all over the world, their demand is expected to decline at the same pace in the coming years. However, currently batteries are being recycled fearlessly along with the equipment used in these vehicles. In this case, the material of recycled batteries will be considered as derived from waste under the IRA.