With the aim of eliminating tailpipe emissions worldwide by 2050, OEMs across the globe have pushed the pedal to electrification of their fleets. And with the EV industry growing rapidly, the demand for lithium, an essential resource for EV battery makers, has surged along.
Multinational Chinese automaker BYD is rumored to be close to penning down a deal to acquire six lithium mines in Africa, as per a local publication.
BYD has estimated the availability of at least 25 million tons of ore with a 2.5 percent lithium oxide grade – close to 1 million tons of lithium carbonate, said the report.
On the economical aspect, the cost of lithium carbonate per ton must be under RMB 2,00,000 (Rs 23,00,000 approximately), a person close to the development said.
It is estimated that if the entirety of ore from the African mines are extracted, it will be sufficient to meet the demand for at least 27.78 million vehicles with 60 kWh batteries. On the other hand, the number will exponentially go up if hybrid EVs that incorporate batteries with capacity of just over 10kWh are taken into account.
Apart from being a new energy vehicle (NEV) maker, BYD is also a power battery manufacturer, implying how important lithium ion is for them. BYD in 2022 has targeted 1.5 million NEV sales by the end of the year. Taking into account its current target, the carmaker wouldn’t have to worry about lithium shortage for at least a decade if the deal goes through.
Out of the six African mines, some are expected to be ready to source lithium for BYD’s blade batteries by the third quarter of 2022. In April, with 4.27 GWh battery installations, the company ranked second to CATL with a market share of 32.2 per cent, as per a recent report from China Automotive Battery Innovation Alliance (CABIA).
