Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

China plans to replace lead battery usage in its low-speed electric vehicles (EVs) with lithium options by Sep 2021 as part of a technical requirements list that has been modified by regulators in the segment.

Officials are preparing rules to reclassify low-speed EVs, according to media reports, though in the past they were not eligible for proper license plates within China’s vast auto market. This change will potentially negatively impact upcoming lead demand considering batteries are among the major uses for the metal.

Earlier this month the Asian nation determined at an industry meeting that lead batteries should stop being used in low-speed EVs, per reports. In its place, these autos will use lithium iron phosphate or ternary lithium batteries, which are lithium-ion batteries that use nickel, cobalt, and manganese for their cathode component.

The plans will be open for feedback during April and May before September’s implementation. According to reports, lead batteries will not be excluded for use throughout the automotive sector but will not be allowed as a power source due to energy density constraints.


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