Great Power Technology

Chapter 226: The price of raw material lithium is rising. What does it have to do with me?

What the hell, I actually hit 267. Chapter 227

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While China and Japan were each working on the latest battery research and development and production, on the other side of the sea, the U.S. Strategic Analysis Office also noticed anomalies in this field.

Everyone in this office has not yet been freed from the oppression of the H-20, but due to the situation, they have to plunge into a battle that is completely unfamiliar to them.

"So, what you are saying is that the other party has probably mastered the new generation of lithium sulfur battery technology and will release it in the near future - you said, within two weeks?"

Johnson was sitting on the chair, his expression as determined as ever, but if you look carefully, it is not difficult to find a slight hint of fatigue in his eyes.

"Yes, this is our preliminary judgment. According to the island country's assessment, the sulfur lithium battery technology mastered by the other party can at least increase the current battery energy density to more than 500WH/KG, which is equivalent to an improvement compared to the current most advanced batteries. 30%, which will have a huge impact on our energy sector.”

"What is likely to happen is that crude oil prices will fall significantly after the battery launch - especially crude oil futures prices."

"Where's the logic? Where's the logic?"

Johnson asked with a frown.

The analyst was stunned for a moment, and then began to explain:

"The logic is that once this battery is released, it will not only directly increase the driving range of electric vehicles, but also a very strong signal, that is, China has mastered strong battery research and development capabilities, and the subsequent battery performance will continue to improve. .”

"The improvement of battery performance means that new energy will further strengthen its role in replacing traditional fossil energy. In the future, the demand for oil will decrease, and the price will naturally decrease."

After listening to the analyst's explanation, Johnson nodded, and then asked:

"So do we need to maintain international crude oil prices? In the long run, what are the advantages and disadvantages of falling crude oil prices for us?"

"Mr. Johnson, in the long run, falling crude oil prices will be good for us, but in the short term, we must maintain high crude oil prices."

"There are three main reasons."

"The first point is to boost Taole, and Taole is stronger; crude oil is a global commodity priced in Taole. If crude oil rises, we can pass on domestic inflation to a certain extent; second point, the rise in crude oil has a negative impact on other countries. It will cause imported inflation and hit other countries' economies; thirdly, our country's industries are located in high-end fields and are less affected by inflation, which will overall increase our economic advantages."

"In addition, even if this reason is not considered, we are still facing pressure from domestic companies, especially shale oil companies."

"We have invested a huge amount of resources in the shale oil field. Although we have achieved certain results so far, there is still a long way to go before we can truly recover the costs and achieve profitability. If the international crude oil price drops, we will be the first to make trouble. Those are the shale oil entrepreneurs."

"Sir, you know that their energy is actually greater than what we see on the surface."

After hearing this, Johnson's expression darkened.

He's a smart guy, so he understands what the analyst is saying.

In fact, the three reasons he mentioned were just a cover, and the real reason was only in his last sentence.

Shale oil manufacturers will not allow international crude oil prices to fall because it will affect their profits.

And money is the number one driving force in this country.

These businessmen can completely ignore the long-term development of the country for short-term interests, but the country has nothing to do with them.

Thinking of this, he sighed slightly.

Yes, he can see through all this, but so what?

He still has to make decisions in this direction and safeguard the interests of many business owners in this country.

After a moment of silence, he spoke:

"Then let's find a way to control international crude oil prices. Throw a cargo ship over and block their port."

The analyst shook his head and replied:

"Sir, this method may not work. On the one hand, we have already used it once, and if we use it again, it will have too many flaws. On the other hand, no matter what, the blockage of the port will only have a short-term impact and cannot fundamentally solve the price of crude oil. A downward trend—especially a downward trend in futures prices.”

"So what's your suggestion?"

Johnson asked with a frown.

After pondering for a moment, the analyst answered:

"I think we can start from the direction of raw lithium. China's lithium production is pitifully small, only 7%, and 70% is imported from overseas. If we can increase the price of raw lithium, we can briefly increase their battery prices. price."

"As long as the price of batteries rises to a certain level, the impact of its technological innovation will be diluted, which can buy us a lot of time."

"Why? I remember that China's lithium ore reserves are not low, right?"

Johnson asked doubtfully.

He had read some analysis materials before and was deeply impressed by this information.

From a global perspective, lithium resource production is mainly concentrated in Aozhou, Chile, Argentina and China. The four countries account for 95% of the world's total reserves. However, China's lithium mine reserves are ranked only after Chile, accounting for 18% of the world's reserves. .

With such abundant reserves, how come 70% of the raw material lithium needs to be imported?

“Because it’s too difficult to mine.”

As he spoke, the analyst projected the map onto the screen, then pointed at a few small red dots marked on it and said:

“Chinese lithium resources mainly include salt lake, spodumene and lepidolite. Among them, salt lake lithium accounts for 83%, mainly distributed in Qinghai and Xizang; spodumene accounts for 15%, mainly distributed in Sichuan; lepidolite accounts for 15%. 2%, mainly distributed in Jiangxi.”

"Most of their lithium is in salt lakes, accounting for about 80%, and most of these salt lakes are located in ecologically fragile areas and areas with underdeveloped infrastructure, making it very difficult to mine."

"This is the reason why their raw material lithium production is low."

"The infrastructure is underdeveloped. Why do I feel that this reason is a bit untenable. Well, let's not discuss this issue for the time being. I want to ask, in what way do we need to control the price of international raw material lithium?"

Johnson asked bluntly.

"We can go through Aozhou Greenbushes, which is the world's largest supplier of raw lithium."

"Can we control them?"

"Yes. We can achieve 100% control. Within two weeks, we will be ready. Then 1 to 3 days before the other party releases, we will start to increase the price of raw material lithium and increase the existing price. to over 300%.”

"I'm afraid this will also have an impact on our other partners, right?"

The analyst smiled and said with an ambiguous expression:

"For domestic companies, we will inform them in some ways to use futures to lock in the price of raw lithium in advance, but for other countries, we have to let them fend for themselves."

Johnson nodded silently, and then said:

"Then output the report and I will sign it."

"clear!"

The analyst turned around and left the office. Johnson leaned back in his chair, his face changing constantly.

He doesn't know whether the decision he made is the right one, because this decision will cause a large number of allies and partners to suffer huge losses, and even some relatively vulnerable manufacturers may not go bankrupt directly.

However, he had to do this because for him, the interests of the country always came before everything else.

For this benefit, he would rather act as the executioner who dropped the knife.

It doesn't matter even if it leaves a lifetime of infamy.

At this moment, an inexplicable passion emerged in his chest.

However, he had no idea that all his worries were unnecessary.

Because the battery China is developing this time is not a sulfur-lithium battery at all, but a sulfur-silicon battery.

Therefore, pushing up the price of raw material lithium is actually nothing more than a joke for China.