Which countries will dominate the economy when lithium becomes more important than oil?

Lithium is indispensable for many technologies, especially for electric batteries Which are now widely used, from electric cars to wind turbines. In all probability Lithium will become more important than oil, That is why global competition is getting hotter. there China He was able to predict this progression, and make sure of it in advance Mining rights in different regions. Thus, the rest of the world is trapped and must regain its independence before relying entirely on Beijing green technologies.

It is not surprising that the competition spans at least four continents, incl United StateL’Australia and the China (which seeks new agreements with Latin America and Africa). While Australia is taking the first steps to gain independence from China and the United States is ready to take advantage of this new situation in turn, Europe seems to be further behind. Come on, let’s see What countries will dominate the economy thanks to lithium.

China, the leading exporter of lithium

China effectively dominates the global economy with its privileged position in terms of lithium production. This is certainly thanks to the targeted strategy and great foresight, which have allowed Beijing to gradually gain more power.

In fact, China has no special natural riches of lithium. Indeed, in Chinese territory there are only8% of global reserves, certainly not enough to justify its enormous productivity. Despite this, Beijing has managed to address this shortcoming by tightening up extraction agreements In different regions and by obtaining different contracts from Long term supply. In short, China with great foresight managed to make up for the lithium shortage in the region before other countries had to worry about it. At the same time, the worker too environmental She played a vital role in creating this balance.

Indeed, it would not be entirely correct to think that other countries have not realized the amazing potential of lithium. Perhaps with some delay, all developed countries have recognized lithium as an indispensable source. Despite this, its processing has long been suspended, due to the pollution factor. One of the main uses of lithium is its use in green technologies, but in view of this, its processing and purification are extremely high contaminants. Only China, so far, has assumed this responsibility, and has occupied the position of supremacy in a very profitable domain.

The agreements of Australia and the United States to liberate themselves from China

Australia could play a crucial role in the new global competition for lithium; Actually, just who Australian mines You extract a file 53% of the world’s lithium. However, most of the mined metal comes from Sold to China who takes care of the final refining, thus obtaining an incredibly profitable profit.

So Australia decided to loosen Beijing’s grip and start production on its territory, also thanks to cooperation with the United States. In particular, as reported by The New York Times, the company Pilbara Minerals It is the largest lithium miner in Australia. The company began collaborating with Australian technology company, Calix, on a refinery for Industrial lithium.

Thanks to the free trade agreement with the United States, Australia will be able to apply for its companies to receive US subsidies fromInflation Reduction Act. American aid is necessary to offset i costs that would be borne by Australian companies, given that compared to China wage level Higher and more stringent environmental protection regulations.

Obviously, the US isn’t exempt from merit, but they could really find a way to carve out a respectable role in Jigsaw green technologies And in the sustainability series. Thus, even Washington could secureindependence from Chinagiven the delicate political balance and strong military alliance with Australia.

Latin America and Africa, so China wants to maintain its production

China has held an almost dominant position in lithium production thanks to a careful shrewdness, which it has so far used to protect itself from changing course by Australians (certainly unpredictable given Beijing’s ruthlessness during the pandemic). In the past two years, in fact, Beijing has invested from $4.5 billion to purchase Lithium mines in different regions.

Most of the investments involvedlatin america and theAfrica, where China managed to reconcile political conflict and security problems, and distinguished itself from all other countries. From jihadist terrorism in Mali and Nigeria, to Latin American governments wanting to nationalize lithium, it cannot be said that the project will be without obstacles. Added to this is the case Zimbabwewhich ask the Chinese Establishment of factories refining on its territory to maintain profits, and can set an example for other exporters.