How Lithium Can Help Western Car Firms Secure EV Triumph

With countries like the UK phasing out petrol and diesel cars over the next few years, two things will become extremely important: Firstly, the design quality, performance and affordability of electric vehicles (EVs) themselves, and the supply of lithium to make the batteries they run on.

At present, lithium titanate and other forms of the metal are mostly mined in far-flung parts of the world and then processed in China, which has ambitions of dominating the market in both batteries and cars.

Indeed, as the Daily Telegraph has reported, Chinese EVs are already being brought to market in the west. It focused on Chinese carmaker BYD, which is promising “premium accessibility” and a ready supply of cars at a time when customers have lengthy waits on orders from western makers.

Preventing the new Chinese firms dominating will be a challenge for established manufacturers. Clearly part of this will be obtaining lithium supplies in countries like the UK to enable the batteries to be made here as a key component of EVs. 

The rest may be less difficult, as the deputy editor of Auto Express John Mcllroy said existing makers, while innovating extensively, also have a brand name and history they can use to their advantage.

Giving the example of Alfa Romeo, he said despite their overhaul of the brand’s range of cars, the firm “isn’t afraid to play the heritage card when needed”. 

He added: “It could be elements like this that give ‘traditional’ car manufacturers a USP over fast-emerging EV-based start-ups, particularly those from China.”

The supplies of lithium in the UK are looking promising, with Cornish Lithium receiving government funding to build a new demonstration plant at Trelavour, and Weardale Lithium agreeing that if it can find commercially viable deposits in the upper Wear Valley these will be supplied to the proposed new refinery Tees Valley Lithium plans for the nearby Tees Freeport in Middlesbrough. 

A reliable UK and European supply of lithium and the heritage of carmakers could yet combine to ensure that the EV market does not come to be dominated by firms from China.