China's Unfair Advantage in Hybrid Car Batteries
With China poised to surpass the United States as the world's largest automobile market this year, the Chinese government has announced plans to help the nation leapfrog Japan to become the largest producer of all-electric and hybrid vehicles in the world. By committing to electric vehicle production, China is also attempting to reduce urban air pollution, carbon emissions and growing dependence on imported oil. A current production Toyota Prius nickel metal hydride battery pack uses 30 kilograms of nickel, 2 kilograms of cobalt and 12 kilograms of lanthanum because the active hydrogen storage alloy in the battery is either LaNi4.5Co0.5 or (Ce, La, Nd, Pr)Ni5. The Prius assembly plant in Japan has so far used one and 1.5 million rechargeable nickel metal hydride battery packs and achieved with them some of the lowest numbers of service issues ever seen in the OEM automotive industry. In fact most of the original Prius rechargeable nickel metal hydride battery packs have exceeded their 8-year 100,000 mile warranty and are still functioning, according to Resource Investor website.
China controls 95% of the world’s supply of rare earth elements, a class of ores used not just in Prius batteries but in a wide range of high-technology applications, from sonar systems to wind turbines, mobile phones and fluorescent lights.
All this gives China an extraordinary - some might say unfair - advantage to lead the race to dominate the manufacture of cutting-edge technology, according to the Wall Street Journal. Even before any major technology partnership announcements, there are reports that the legendary US investor Warren Buffet is investing in BYD, an obscure Chinese battery, mobile phone, and electric car company.
Toyota and Honda, the two currently leading makers of hybrid vehicles, do not think the Li-on technology is ready for prime time yet. They reportedly are going with an upgraded NiMH battery, using the rare earth elements found in China. Carlos Ghosn, on the other hand, is taking Nissan directly into what he thinks will be the ultimate answer, a Li-on powered electric car with a short stop in hybrid-land, but still powered with Li-on.
Last year, Honda announced that it would produce only hybrid motor vehicles by 2018, and others are likely to follow in its footsteps. As the demand for nickel hydride car batteries grows, those depending on such ores may be forced in the near term to invest in rare earth development in Inner Mongolia, Jiangxi and some other southern provinces to secure supply. In fact, some companies already have done just that. Right now, it’s stuff like X-ray screen makers, phosphor-panel and lamp manufacturers and other electronics firms that have set up joint ventures in China.
What China is waiting for is for the really high-end technology with mass market leverage like hybrid car batteries to beat a path to its door, says the Wall Street Journal. Beijing will have a window to get to a position of advantage with high-end manufacturers as it holds most of the cards for now.
Meanwhile,the new auto-industry plan, published on the main Web site of China's central government, says China aims to build capacity to manufacture 500,000 "new energy" vehicles, such as all-electric battery cars and plug-in electric hybrid vehicles. The plan aims to increase sales of such new-energy cars to account for about 5% of China's passenger vehicle sales.
Related Links:
China's Electric Ambitions
Buffet Investing in Chinese Battery Maker
Car Battery Battle Between Li-on and Nickel Metal Hydride
Auto Industry Prospects in India, Pakistan and China
Pakistan Automobiles Report 2009
Auto Pakistan Expo 2009
Pakistan Automotive Report
China Surpasses US in Auto Sales
Auto Industry in India
India's Global Shopping Spree
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https://profit.pakistantoday.com.pk/2018/06/11/mous-agreements-galore-for-assembling-electric-cars-in-pakistan/
KARACHI: Rahmat Group has signed at least 14 memorandum of understanding (MoU) and technical collaboration agreements last month with different Chinese companies to establish Electrical Complex at Nooriabad.
This complex has been planned to establish assembly-cum-progressive manufacturing plants for electric/ battery operated vehicles under joint venture and technical collaboration agreements with the Chinese manufacturers. Roll out will begin with electric buses. Eventually, the group plans an entry into electric two-wheelers as well. Plants with two well-known companies of China would be set up at the complex, reports a national daily.
Rahmat Group’s chief operating officer Shaukat Qureishi said on Saturday that the group has already acquired 25 acres of land at Nooriabad. The group is filing the application and proposals with the Board of Investment and ministry of Industries after the Eid, based on all the joint venture agreements signed by respective manufacturers from China.
As soon as the approval is granted, a crash plan has been made to come up with the models within 4-6 months, while the production lines will be set up on a fast track, said Qureshi.
“All arrangements have been firmed up with the partners concerning plants, machinery, and equipment,” he said, adding immediate production would be under SKD followed by CKD as per the localisation program of Auto Policy 2016-2021. However, for introduction, immediate imports of the desired units would be conducted within the 3-4 months.
A MoU has been signed with two different Chinese companies for the local production of electric cars (small cars) with different capacities while another memorandum has been signed with another Chinese firm to assemble electric vans/pickup/loaders.
The group also plans to make electric lithium-based high-tech batteries with two famous Chinese companies for use in buses and cars as well as motorcycles on options.
Giving some examples, Shaukat said some the of MoUs and technical collaboration agreements signed with Chinese companies are Shangdong Leiteng Electric Power Technology Co, Jiangzi Technical Vehicles Manufacturing Co Ltd, Jiangsu Fuan Technologies, Louyang Xinguang Lithium Science and Technology Co Ltd, Zhehang Shangi Tianying Vehicle Industries, Yangzhou Daojue New Energy Development Co Ltd, Haohong Motors, Weifang Shandong Electric Power Technology Co Ltd, Shanghai Shenlong Bus Co Ltd, Wuxi Shengbao Electric Vehicle Co Ltd and Base Ningbo Foreign Trade Co Ltd.
The government has recently relaxed duties of electric vehicles in the last budget which is not enough. In order to save foreign exchange from purchase of fuel, a crash programme ought to be launched by the government to promote e-vehicles, with zero customs duty and sales tax.