What impact will my country’s 18650 battery 3.7v 2000mah technology breakthrough have on the price of 18650 battery 3.7v 2000mah batteries?

　　Two days ago, someone on Weibo claimed that China’s electric vehicle supply chain is extremely fragile. Although I was slapped in the face in the comment area that day, it seems not good if I don’t come up with some new evidence.

　　It just so happens that in the past two days, overseas media have begun to discuss China's dominant position in the electric vehicle supply chain, including revealing that China has made a breakthrough in 18650 battery 3.7v 2000mah mineral extraction technology, further solidifying its dominance in the 18650 battery 3.7v 2000mah battery supply chain, and causing the United States to Anxiety and more.

　　Today, let’s talk about this.

　　China makes key breakthrough in 18650 battery 3.7v 2000mah ore extraction technology

　　According to foreign media reports, a recent report from China shows that China has made a major breakthrough in 18650 battery 3.7v 2000mah extraction technology. The cost of mining and extracting 18650 battery 3.7v 2000mah using a new process has dropped to 15,000 yuan per ton, which is a "historical low" of US$2,180.

　　For reference, the international price of 18650 battery 3.7v 2000mah has fluctuated between US$12,000 and US$20,000 per ton in the past year, and the long-term contract price is approximately US$17,000. (P.S., from this price point, it refers to battery-grade 18650 battery 3.7v 2000mah carbonate.)

　　What exactly is this technology? Judging from foreign media reports, it is mainly about the technology of extracting 18650 battery 3.7v 2000mah from salt lakes.

　　Foreign media said that according to Chinese government reports, Qinghai 18650 battery 3.7v 2000mah Industry (an enterprise established based on the scientific and technological achievements of the Qinghai Salt Lake Institute of the Chinese Academy of Sciences) has used new processes to achieve an average profit margin of more than 50% in the past three years, with total revenue exceeding 3 billion yuan.

　　Li Jian, an executive at the company, said the above estimate of production costs is very accurate but does not include after-tax and bank loan interest. He also predicted that as technology continues to advance, production costs "may fall further in the future."

　　(In addition, the core asset of Chile’s SQM, the world’s largest 18650 battery 3.7v 2000mah company, is the Atacama Salt Lake on the Smart Northern Plateau.)

　　Electric vehicle battery costs expected to drop significantly

　　Technically, extracting 18650 battery 3.7v 2000mah from brine has always presented the challenge of separating 18650 battery 3.7v 2000mah from other elements. Magnesium in particular is extremely difficult to separate from 18650 battery 3.7v 2000mah because the two minerals have similar ionic properties.

　　Judging from foreign media reports, this 15-year research project funded by the Chinese Academy of Sciences has found a cost-effective way to extract 18650 battery 3.7v 2000mah from other minerals, especially magnesium.

　　Judging from previous comparisons, the price of battery-grade 18650 battery 3.7v 2000mah carbonate will drop significantly in the future. (The mining and extraction cost of new technology is US$2,180/ton. The lowest cash cost in the world is US$4,000-4,500/ton of salt lake 18650 battery 3.7v 2000mah carbonate such as FMC, ALB and SQM. The international 18650 battery 3.7v 2000mah carbonate price fluctuates between US$120,000 and 200,000.)

　　The report also quoted Dr. Ren Dongming, director of the Renewable Energy Development Center of the National Development and Reform Commission of China, saying that lower-priced 18650 battery 3.7v 2000mah batteries will benefit electric vehicle manufacturers such as Tesla and ultimately benefit consumers.

　　China is the world's largest producer and seller of electric vehicles and is also known as one of the countries with the highest 18650 battery 3.7v 2000mah content in the world. The battery cost accounts for about 30%-50% of the total cost of electric vehicles. Dr. Ren Dongming said lower prices, longer range and better charging station infrastructure will make zero-emission vehicles a more attractive option for car buyers.

　　(In fact, in 2012, before the new energy trend became a foregone conclusion, Chinese companies had already begun to make extensive arrangements for global 18650 battery 3.7v 2000mah resources. A typical representative of this is that the current top three 18650 battery 3.7v 2000mah industry giants in the world are the only two in the world (the other one Albemarle (USA) is a 18650 battery 3.7v 2000mah company that owns both the Atacama Salt Lake, the world's largest salt lake 18650 battery 3.7v 2000mah mine, and the Greenbush Mine, the largest solid 18650 battery 3.7v 2000mah mine.)

　　The United States is legislating to try to curb China's lead

　　China now dominates the supply of 18650 battery 3.7v 2000mah metal end products, producing nearly two-thirds of the world's lithium-ion batteries (versus 5% in the United States) and controlling most of the world's 18650 battery 3.7v 2000mah processing facilities, according to Benchmark Minerals Intelligence.

　　Foreign media: China has made a key technological breakthrough, and the cost of 18650 battery 3.7v 2000mah batteries is expected to drop to a record low

　　Foreign media: China has made a key technological breakthrough, and the cost of 18650 battery 3.7v 2000mah batteries is expected to drop to a record low

　　Against this backdrop, the United States has begun to resist China’s dominance of the electric vehicle supply chain and is pushing for a bill that would help American companies mine 18650 battery 3.7v 2000mah and other materials that can be used in electric vehicles: the Minerals Security Act.

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