Energy transition: refining, the formidable weapon of China in the metal war

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"The Chinese integrated well before us this dynamic of rarity in access to materials because it thought well before us as a great power which could be overheating," regretted Emmanuel Macron, during the presentation of hisFrance 2030 plan.It is indeed in the 7th five -year plan (1986-1990) - the French president was still a boy - that the Chinese Communist Party classified as strategic the supply of metals, in particular the rare earths.

"China has no oil like the Middle East but it has rare earths," said Deng Xiaoping at the time, which opened the country to the economy of the market.It was rather well seen from the venerable leader.

"At that time, I created a French metallurgical subsidiary for the refining of strategic metals in Beijing.The goal of the Chinese was first of all to provide for their national industry.But this metallurgical strategy for the importation of minerals, which was not bellicious with regard to the West, was opportunistic.It enabled metallurgical surpluses, opening a new source of currencies for the Chinese Communist Party.Which allowed us to import Palladium of Chinese origin into Paris, thanks to a contract with an industrialist from the Yunnan region.It was at this time that China was becoming the future factory in the world since at the same time developed countries made the choice to deindustrialize, "said Didier Julienne.

Retrospectively, the decision of the 7th five -year plan has indeed proved to be paid.It allows China to occupy a central place today on the worldwide chessboard of mines and metals.She acquired it with her "doctrine raw materials" which asked to secure the supplies of raw materials to meet the insatiable needs of economic growth which appeared at 2 figures for decades triggering a supercycle in the markets of the materials, just slowed down by the 2008 financial crisis.

Active mining diplomacy

This strategy led the country to a prospecting which did not confine itself to its only territory.Certainly, its subsoil contains significant mining resources.For example, China is the 1st world producer of steel, aluminum and Lanthanides (rare earths), the 3rd of copper, and the 3rd of lithium.

But it also deployed active mining diplomacy via the exploitation of local deposits abroad, acquisitions and acquisitions thanks to a dozen companies.

In 2019, nine Chinese companies produced around 33% of cobalt mining production, mainly in the DRC but also in Papua New Guinea.Chinese company Ningxia Tianyuan Manganese Industry represented 23% of manganese production, mainly extracted in Ghana and Australia.For lithium, Tanqui Lithium and Ganfeng Lithium are the world leaders because they have two of the world's production to them for around 60%.

World leader in refining

But the most spectacular is in the refining activity of which it is the world leader.China transforms 80% of the global supply of metals present in batteries for electric vehicles: lithium, manganese, nickel, graphite and cobalt.The decision of the 7th five -year plan turned out to be paid.

This leading position is also explained by the need for Asian giant to import minerals from countries from which they were extracted."China could not refine locally because most mining countries did not have the necessary electricity.She therefore repatriated minerals on her soil where her refiners had sufficient and reliable electricity whose price she mastered, less expensive than in producing countries, thanks to her economies of scale ", specifies, for his part, DidierJulian.

The objective of carbon neutrality in 2060

With insured volumes, increasingly technical know-how, the Asian giant has therefore taken a step ahead of all other countries in the new economic configuration imposed by the fight against global warming.The country has set itself the objective of reaching a carbon peak by 2030, and at the summit held this year at the United Nations, President Xi Jinping set at 2060 the objective of carbon neutrality.It is very ambitious for an economy that largely fits fossil energy.

"Carbon neutrality does not mean the total elimination of hydrocarbons, but rather compensations for use.Beijing will change manufacturing processes, for example by using hydrogen rather than coal in steel production, but also by recycling steel that was used he is 30 years old, during the first wave of urbanization of urbanizationmass.This recycled steel which will make less carbon than a primary steel will serve tomorrow for the second Chinese urbanization, more qualitative ", decrypts Didier Julienne.

Important electricity shortages

For the moment, as in Europe, the People's Republic faces major electricity shortages.At the beginning of November, Beijing announced that it had produced on average daily in October 11.93 million tonnes, 10% more than in September.A record level!

But China does not deviate from its goal.The 14th five-year plan (2021-2025) plans to accelerate the development of clean energies: wind, photovoltaic, hydroelectric but also nuclear that China class, unlike the European Commission which has not yet decided in this category for weaknessof his GHG shows.

"Beijing has formed for decades of strategic uranium stocks, notably from Kazakhstan, representing several years of consumption.This confirms the fact that the Chinese authorities have a long -term vision of the development of nuclear electricity, "said a specialist in the Chinese economy.

At the same time, this decarbonation plan plans to eliminate obsolete capacities in industries with high energy consumption such as steel industry, petrochemicals and chemistry.Thus, aluminum Corporation of China (Chinalco), the third aluminum producer in the world, wants to reduce its carbon emissions by 40 % by 2035 after a peak of emissions which is planned to be reached before 2025.Concrete sign of these efforts, Chinalco said that around 50 % of electrolytic aluminum products had been manufactured in 2020 with renewable energies.Baowu Steel, one of the largest steelmakers in the world, targets a carbon peak in 2023 and neutrality by 2050.

In the DRC, Chinese companies Zijin Mining and Canadian Ivanhoe Mines and Citic Metals operate a copper mine, Kamoa-Kakula, which should make it the second largest copper mine in the world when it is in full production, or 800.000 tonnes of metal copper equivalent per year.The site will be powered by hydraulic original electricity and with equipment operating with electric batteries.It will be one of the least carbon emitting mines in the world.

The strategic development of electric cars

The five -year plan also indicates that the development of electric cars is "strategic".The initial objective was to target a market share of 20 % for these vehicles by 2025.However, it will be reached this year.

"China which does not have an oil diplomacy as powerful as that of the United States or Europe had to find a substitute for its mobility.This is why she embarked so early and with as much success in electric mobility.Besides, without Chinese engineers, Europe would not have become the world's leading electric vehicle market with 20% of sales.This is why we will have more and more Chinese electric cars in Europe, "said Didier Julienne.

In 2020, Chinese companies led by Contemporary Amperex Technology represented six of the first ten manufacturers of electric vehicle batteries in the world.For 2035, Beijing targets 50% of new sales.

Finally, like the European Union, China is counting on the recycling of its existing metal stock.According to the CNMIA, the association which brings together players in the sector, China has consumed 700 million tonnes of non -ferrous metals since the 1950s.In 2025, she plans, the production of the metal recycling will reach 20 million tonnes, including 4 million tonnes of copper, 11.5 million tonnes of aluminum, 3 million tonnes of lead and 1.5million tonnes of zinc.Enough to feed its gigafactories with batteries for electric vehicles and its workshops with wind turbines and solar panels.The French president has not finished being admiring!

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Find the entire file on "the war of strategic metals":

1/ A decisive issue, editorial

Metals: the battle not to lose for the West

The 10 strategic metals for the energy transition

Interview with Professor Philippe Chalmin

2/ Refining, the formidable weapon of China to dominate the market

3/ The United States in search of autonomy recovery the sector

4/ Europe sees its industrial future in recycling and mines

5/ France, innovation to fill the delay and limit ruptures

6/ Semiconductors: the risk of shortage of...metals

11 minutes

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