Input Stories

China dominates the global battery mineral market, from sourcing and mining to production, according to the U.S. Energy Information Administration.

What’s going on: “China imported almost 12 million short tons of raw and processed battery minerals, accounting for 44% of interregional trade, and exported almost 11 million short tons of battery materials, packs and components, or 58% of interregional trade in 2023, according to regional UN Comtrade data.” 

• These minerals’ importance will only increase as the appetite for electric vehicles and renewable energy technologies grow.
• However, as the NAM recently told the Commerce Department, Section 232 tariffs will not increase domestic sourcing of these critical minerals or decrease U.S. reliance on China for them. 
• Instead, to shore up domestic critical minerals supply, the U.S. needs permitting reform, incentives for producers and enhanced trade relationships with partners other than China.

Mining and production: China either produces domestically or has large ownership stakes in companies that produce these minerals.

• In 2023, the country produced about 18% (33,000 short tons) of the world’s mined lithium, and Chinese firms “control 25% of the world’s lithium mining capacity.”
• Chinese companies also have sizable investments in mining operations in the “lithium triangle,” an area in Chile, Argentina and Bolivia that holds half of the world’s lithium stores.
• “China produced 79%, or 1.27 million short tons, of the world’s natural graphite in 2024, according to the U.S. Geological Survey.”
• Chinese firms own 80% of cobalt production in Congo-Kinshasa, the location of more than 50% of the world’s cobalt production. 

Trade: After production, raw battery minerals are exported—and in 2023, China accounted for nearly half (46%) of global raw battery mineral import trade.

• That year, the world’s largest lithium producer, Australia, sent almost all its lithium exports to China. 

Processing: China has the global critical minerals processing market cornered, too.

• It processes more than 90% of the world’s graphite.
• In 2022, “Chinese companies accounted for over two-thirds of the world’s cobalt and lithium processing capacity.”
• The next year, China imported 20% of global processed battery minerals, mostly African cobalt. Also in 2023, China exported 58% of the world’s processed battery minerals, primarily synthetic graphite, elsewhere in Asia and to Oceania. 

Battery materials manufacture and trade: “China accounted for 53% of the world’s battery material export trade in 2023.” 

• In 2022, the country made 85% of the world’s anodes, 82% of its electrolytes, 74% of its separators and 70% of its cathodes.
• In 2023, China controlled almost 85% of “battery cell production capacity by monetary value.”