East Asia has sufficient supply of lithium batteries for energy storage

Will repurposed lithium-ion batteries benefit China's 5G infrastructure?

5G infrastructure, data centers, and energy storage will all benefit from repurposed lithium-ion batteries. By 2025, the backup power systems for all of China’s 5G telecom stations could be supplied by repurposed batteries.

Which countries rely on repurposed lithium-ion batteries?

China, Japan, and South Korea manufacture 85% of the world’s EV batteries, relying on raw material imports. These countries are at risk of price and supply instability, risks previously identified by auto manufacturers like Tesla. 5G infrastructure, data centers, and energy storage will all benefit from repurposed lithium-ion batteries.

What are lithium-ion batteries used for?

Lithium-ion batteries, usually used in smartphones and electric vehicles (EVs), are the dominant technology to store energy for mid to large-scale power plants to help electricity grids ensure a reliable supply of energy.

Which materials are used in lithium ion batteries?

Lithium, nickel, manganese, and cobalt are of particular significance for the dominant lithium-ion battery (LIB) technology, primarily relying on lithium iron phosphate (LFP) and lithium nickel manganese cobalt oxide (NMC) cathodes. Geographically, the global supply is heavily reliant on China with competition expected to intensify.

Should lithium processing facilities be built outside China?

The local content requirements and foreign entity of concern restriction in the Clean Vehicle Tax Credit of the US Inflation Reduction Act incentivize the construction of lithium processing facilities outside of China.

What is the expected growth of lithium demand by 2050?

Lithium demand is set to grow tenfold by 2050 under the International Energy Agency’s (IEA) Net Zero Emissions by 2050 Scenario. An increased supply of lithium will be needed to meet future expected demand growth for lithium-ion batteries for transportation and energy storage.