CATL chief calls for efforts to develop lithium resources

Accelerated steps should be made to drive the exploration and development of domestic lithium resources, and the establishment of China's carbon footprint system on batteries to boost China's competitiveness in the fiercer global new energy vehicle market, said a political adviser during the ongoing two sessions.

"With the current supply of lithium still tight, the exploration and development of domestic lithium resources should be stepped up to ensure the safety of the supply chain," said Zeng Yuqun, a member of the 13th National Committee of the Chinese People's Political Consultative Conference.

Zeng said it is of strategic significance to ensure the supply of lithium, which is the core raw material of the latest generation of batteries for NEVs.

"At the same time, related departments and companies should speed up independent innovation and scientific research into efficient utilization of resource recycling to reduce reliance on resources," said Zeng, who is also founder and chairman of battery giant Contemporary Amperex Technology Co Ltd.

Since last year, prices of battery metals have risen sharply worldwide. Australian lithium and tantalum producer Pilbara Minerals startled the market when it announced it had secured an offer of $2,240 per metric ton for a parcel of lithium-rich spodumene crystal.

The China Nonferrous Metals Industry Association said almost 60 percent of spodumene crystal consumed by the nation annually to produce lithium salts is imported. Spodumene crystal is a material used to produce NEV batteries.

The government is now working to help domestic enterprises withstand fluctuations in the raw materials market for NEVs.

Xin Guobin, vice-minister of industry and information technology, said in a news conference that the ministry will speed up collaboration with other government departments to improve the supply system for key resources needed in NEV manufacturing, including lithium, cobalt and nickel.

"It is not only China but also other countries that are scrambling to build bigger reserves of core raw minerals, which are key to lowering the high cost of NEVs," said Roy Lu Yan, head of industrial research at battery giant Gotion High-Tech.

"Chinese companies should vigorously develop resource-friendly technological innovations and advanced battery recycling to reduce extreme dependence on such resources," Lu said.

At the two sessions, Zeng also suggested establishing a carbon footprint management system for NEV batteries to guide low-carbon development in the industry.

A carbon footprint is the total amount of greenhouse gases released. The EU proposed that only rechargeable industrial and electric vehicles batteries, for which a carbon footprint declaration has been established, can be placed in the market.

"European nations and the United States have incorporated battery carbon footprint evaluation into their strategic plans and formulated relevant supporting regulations," Zeng said.

This also echoed the suggestion of Lei Jun, founder, chairman and CEO of Xiaomi Corp, who said that NEVs have become a key battlefield for global competition in the auto industry, and a complete, clear and accurate carbon footprint accounting system is the premise and foundation for the low-carbon development of NEVs.

Lei, who is also a deputy to the 13th National People's Congress, suggested establishing industrial standards and methods for carbon footprint accounting, as well as carbon footprint certification and incentive programs for emissions reduction.

Ma Si contributed to this story.