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Visualizing China’s Evolving Energy Mix

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Visualizing China’s Energy Transition in 5 Charts

Visualizing China’s Energy Transition in 5 Charts

In September 2020, China’s President Xi Jinping announced the steps his nation would take to reach carbon neutrality by 2060 via videolink before the United Nations Assembly in New York.

This infographic takes a look at what this ambitious plan for China’s energy would look like and what efforts are underway towards this goal.

China’s Ambitious Plan

A carbon-neutral China requires changing the entire economy over the next 40 years, a change the IEA compares to the ambition of the reforms that industrialized the country’s economy in the first place.

China is the world’s largest consumer of electricity, well ahead of the second place consumer, the United States. Currently, 80% of China’s energy comes from fossil fuels, but this plan envisions only 14% coming from coal, oil, and natural gas in 2060.

Energy Source20252060% Change
Coal52%3%-94%
Oil18%8%-56%
Natural Gas10%3%-70%
Wind4%24%+500%
Nuclear3%19%+533%
Biomass2%5%+150%
Solar3%23%+667%
Hydro8%15%+88%

Source: Tsinghua University Institute of Energy, Environment and Economy; U.S. EIA

According to the Carbon Brief, China’s 14th five-year plan appears to enshrine Xi’s goal. This plan outlines a general and non specific list of projects for a new energy system. It includes the construction of eight large-scale clean energy centers, coastal nuclear power, electricity transmission routes, power system flexibility, oil-and-gas transportation, and storage capacity.

Progress Towards Renewables?

While the goal seems far off in the future, China is on a trajectory towards reducing the carbon emissions of its electricity grid with declining coal usage, increased nuclear, and increased solar power capacity.

According to ChinaPower, coal fueled the rise of China with the country using 144 million tonnes of oil equivalent “Mtoe” in 1965, peaking at 1,969 Mtoe in 2013. However, its share as part of the country’s total energy mix has been declining since the 1990s from ~77% to just under ~60%.

Another trend in China’s energy transition will be the greater consumption of energy as electricity. As China urbanized, its cities expanded creating greater demand for electricity in homes, businesses, and everyday life. This trend is set to continue and approach 40% of total energy consumed by 2030 up from ~5% in 1990.

Under the new plan, by 2060, China is set to have 42% of its energy coming from solar and nuclear while in 2025 it is only expected to be 6%. China has been adding nuclear and solar capacity and expects to add the equivalent of 20 new reactors by 2025 and enough solar power for 33 million homes (110GW).

Changing the energy mix away from fossil fuels, while ushering in a new economic model is no small task.

Up to the Task?

China is the world’s factory and has relatively young industrial infrastructure with fleets of coal plants, steel mills, and cement factories with plenty of life left.

However, China also is the biggest investor in low-carbon energy sources, has access to massive technological talent, and holds a strong central government to guide the transition.

The direction China takes will have the greatest impact on the health of the planet and provide guidance for other countries looking to change their energy mixes, for better or for worse.

The world is watching…even if it’s by videolink.

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Electrification

Will Direct Lithium Extraction Disrupt the $90B Lithium Market?

Visual Capitalist and EnergyX explore how direct lithium extraction could disrupt the $90B lithium industry.

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Will Direct Lithium Extraction Disrupt the $90B Lithium Market?

Current lithium extraction and refinement methods are outdated, often harmful to the environment, and ultimately inefficient. So much so that by 2030, lithium demand will outstrip supply by a projected 1.42 million metric tons. But there is a solution: Direct lithium extraction (DLE).

For this graphic, we partnered with EnergyX to try to understand how DLE could help meet global lithium demands and change an industry that is critical to the clean energy transition.

The Lithium Problem

Lithium is crucial to many renewable energy technologies because it is this element that allows EV batteries to react. In fact, it’s so important that projections show the lithium industry growing from $22.2B in 2023 to nearly $90B by 2030.

But even with this incredible growth, as you can see from the table, refined lithium production will need to increase 86.5% over and above current projections.

2022 (million metric tons)2030P (million metric tons)
Lithium Carbonate Demand0.461.21
Lithium Hydroxide Demand0.181.54
Lithium Metal Demand00.22
Lithium Mineral Demand0.070.09
Total Demand0.713.06
Total Supply0.751.64

The Solution: Direct Lithium Extraction

DLE is a process that uses a combination of solvent extraction, membranes, or adsorbents to extract and then refine lithium directly from its source. LiTASTM, the proprietary DLE technology developed by EnergyX, can recover an incredible 300% more lithium per ton than existing processes, making it the perfect tool to help meet lithium demands.

Additionally, LiTASTM can refine lithium at the lowest cost per unit volume directly from brine, an essential step in meeting tomorrow’s lithium demand and manufacturing next-generation batteries, while significantly reducing the footprint left by lithium mining.

Hard Rock MiningUnderground ReservoirsDirect Lithium Extraction
Direct CO2 Emissions15,000 kg5,000 kg3.5 kg
Water Use170 m3469 m334-94 m3
Lithium Recovery Rate58%30-40%90%
Land Use464 m23124 m20.14 m2
Process TimeVariable18 months1-2 days

Providing the World with Lithium

DLE promises to disrupt the outdated lithium industry by improving lithium recovery rates and slashing emissions, helping the world meet the energy demands of tomorrow’s electric vehicles.

EnergyX is on a mission to become a worldwide leader in the sustainable energy transition using groundbreaking direct lithium extraction technology. Don’t miss your chance to join companies like GM and invest in EnergyX to transform the future of renewable energy.

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Electrification

Chart: The $400 Billion Lithium Battery Value Chain

In this graphic, we break down where the $400 billion lithium battery industry will generate revenue in 2030.

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EnergyX_Breaking-Down-the-Battery-Value-Chain

Breaking Down the $400 Billion Battery Value Chain

As the world transitions away from fossil fuels toward a greener future, the lithium battery industry could grow fivefold by 2030. This shift could create over $400 billion in annual revenue opportunities globally.

For this graphic, we partnered with EnergyX to determine how the battery industry could grow by 2030.

Exploring the Battery Value Chain

The lithium battery value chain has many links within it that each generate their own revenue opportunities, these include:

  • Critical Element Production: Involves the mining and refining of materials used in a battery’s construction.
  • Active materials: Creating and developing materials that react electrochemically to allow batteries to charge and discharge.
  • Battery cells: Involves the production of rechargeable elements of a battery.
  • Battery packs: Producing packs containing a series of connected battery cells. Generally, these come in two types: NMC/NMCA, the standard in North America and Europe, and LFP, the standard in China.
  • Recycling: Reusing battery components within new batteries.

But these links aren’t equal, each one is projected to generate different levels of revenue by 2030:

China 🇨🇳Europe 🇪🇺United States 🇺🇸Rest of World 🌍
Total$184B$118B$62B$39B
Critical Element Production$37B$25B$15B$8B
Active Materials$54B$31B$14B$11B
Battery Packs$34B$22B$11B$7B
Battery Cells$53B$37B$20B$11B
Recycling$6B$3B$2B$2B

On the surface, battery cell production may contribute the most revenue to the battery value chain. However, lithium production can generate margins as high as 65%, meaning lithium production has potential to yield large margins.

How Much Lithium Is Available?

Just a few countries hold 81% of the world’s viable lithium. So, supply bottlenecks could slow the growth of the lithium battery industry:

NationViable Lithium Reserves (2023)
Chile 🇨🇱9.3M t
Australia 🇦🇺6.2M t
Argentina 🇦🇷2.7M t
China 🇨🇳2M t
U.S. 🇺🇸1M t
Rest of World 🌍4.9M t

Supplying the World With Batteries

Supplying the world with lithium is critical to the battery value chain and a successful transition from fossil fuels. Players like the U.S. and the EU, with increasingly large and growing lithium needs, will need to maximize local opportunities and work together to meet demand.

EnergyX is on a mission to become a world leader in the global transition to sustainable energy, using cutting-edge direct lithium extraction to help supply the world with lithium.

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