The Chinese connection

China controls a great deal of the market for batteries because they control materials for Li-Ion batteries. 100% of the graphite anodes, which all Li-Ion batteries use, come from China. And they control the vast majority of deposits of rare earths and process most of the cobalt from around the world.

This has a number of manufacturers worried if the technology our futures run on will be Li-Ion batteries. So the search is on for alternatives and more sources. This isn't because China is scary. It's because of supply and demand. Costs will go down when there are more sources and more competition.

But until there are more sources found or different chemistries used, the market for battery materials has been very stable. In fact, the production of these materials has gone up considerably even if the demand has grown faster than that supply.

So is the China bottleneck really something to be worried about? In my opinion, it isn't a problem. Barring war with China, it is in the interest of the companies and the government to keep the battery material market strong.

But what if there is war with China? Even then, the materials will still have a market, but it will be more expensive.