The Green Revolution: China's Dominance in Clean Energy Metals
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Chapter 1: Understanding Clean Energy Metals
The upcoming green revolution is poised to be significantly influenced by clean energy metals. The extraction and processing locations of these metals are crucial to understanding this transition.
Recently, I discussed the surge in demand for Rare Earth Elements (REEEs), highlighting their critical role in industrial applications and clean energy technologies. These metals, revered for their unique catalytic properties, are essential in the shift toward a more sustainable economy due to their concentrated deposits in specific global regions.
China currently possesses approximately 38% of the world's REE reserves and produced a staggering 85% of refined rare earths in 2020. This statistic underscores China's dominance over the supply chain for these vital resources. However, the challenge extends beyond just REEs; most clean energy metals, including the rare earths, undergo processing in China, regardless of their origin. This situation is visually represented in the infographic provided by the International Energy Agency (IEA).
Section 1.1: Key Clean Energy Metals
The infographic not only highlights the rare earths but also includes Copper, Nickel, Cobalt, and Lithium—essential elements in advanced technologies such as smartphones, computers, and electric vehicles. The chart illustrates the production and processing capabilities of various nations. While China primarily leads in the production of REEs, it monopolizes the extraction of all the mentioned metals.
Subsection 1.1.1: Lithium Production Dynamics
Lithium, a highly reactive element crucial for rechargeable batteries in mobile phones, laptops, and electric vehicles, is predominantly sourced from Australia (52%) and Chile (22%), with China's production accounting for only 13%. Nonetheless, China holds the majority extraction share at 58%. Additionally, it controls around 35% of nickel refining, 65% of cobalt refining, and 40% of copper refining.
Section 1.2: Cobalt's Extraction and Processing
Although cobalt is mainly mined in the Democratic Republic of Congo (DRC), China remains a leader in cobalt processing. Chinese enterprises own 15 of the 17 industrial cobalt operations in the DRC, as revealed by data analysis. Given these dynamics, it’s clear why the U.S. and many Western nations harbor concerns regarding the green energy transition, especially as the supply chains for critical components are largely under China's control.
Chapter 2: The Global Implications of China's Control
The first video titled "Green revolution: China makes big push into auto sector" explores China's strategic initiatives within the clean energy landscape, shedding light on its automotive sector advancements and their global ramifications.
The second video, "Understanding Neoliberalism as a System of Power," delves into the broader economic structures affecting global trade, including the implications of energy resource management.