(Yicai Global) March 13 -- China is the world’s largest producer of power batteries and deputies to the National People’s Congress have proposed making the supply of raw materials for the batteries more secure because of the country’s dependence on their import.

A number of deputies made the suggestion at the just-concluded so-called annual Two Sessions of China’s legislature, the NPC, and the Chinese People’s Political Consultative Conference.

China is the global production center of the lithium-ion battery industry and a big consumer but rare mineral resources are mostly available overseas, said Yin Tongyue, Chery Holding chairman and an NPC deputy.

At present, firms in the country’s lithium-ion battery industry chain generally ship mineral resources from overseas for processing, sale and use in China, a business model that has huge hidden dangers, he noted.

Yin suggested that lithium, cobalt, and nickel be listed as national strategic reserve resources, and through international cooperation, such mineral-rich counties should be pushed to use their relevant resources as development projects to attract investment.

Li Liangbin, chairman of Ganfeng Lithium Group and also an NPC deputy, proposed that some degree of policy or resource support should be given to businesses with overseas mineral resources.

Economic and trade cooperation mechanisms should be set up with resource countries, and the approval and review system should be optimized to promote the facilitation of various businesses in foreign investment and cooperation, and shorten the investment and construction period of projects, Li added.

Another deputy, Zhu Huarong, chairman of Chongqing Changan Automobile, called for the interception of policies to encourage companies with technical and financial strength to speed up the exploration and development of domestic high-quality lithium resources.

Regarding power battery recycling, Liu Changlai, a deputy and chairman of Camel Group, suggested that related laws should be further improved, with clear carrot and stick rules formulated. Universities, institutions and firms should participate in overcoming technical barriers together to realize high-efficiency battery recycling as soon as possible in order to prepare for the impending wave of wasted batteries.

The entry threshold of the power battery recycling industry should be raised and the talent nurturing system in the battery recycling field improved, according to Liu Jiang, general manager of Sichuan Changhong Electronic Holdings and a NPC deputy.

Last year, China’s sales of new energy vehicle ranked first globally for the eighth straight year, surging 94 percent to 6.9 million units, data from the China Association of Automobile Manufactures showed. According to Ministry of Public Security data, new energy vehicle ownership was 13.1 million as of the end of 2022, including 10.5 million pure electric vehicles.

Editors: Zhang Yushuo, Peter Thomas