The U.S. and Japan have reportedly reached a deal on critical EV battery minerals.
What Happened: The U.S. and Japan have reached a deal on trading in minerals key to electric vehicle batteries, reported Reuters, citing U.S. officials.
See Also: Best Electric Vehicle Stocks
The trade deal with Japan is an attempt to solve supply chain issues impacting EV manufacturers, the report added. Currently, China solely dominates the sector.
The deal also aims to reduce U.S.-Japanese dependence on China for such materials.
As per the new agreement, U.S. and Japan, now, cannot enact bilateral export restrictions on minerals critical for EV batteries, including lithium, nickel, cobalt, graphite and manganese, stated the report.
The deal also eyes collaboration to combat “non-market policies and practices” of other countries in the sector and investment reviews of foreign investments in their critical minerals supply chains, Reuters added.
China’s Contemporary Amperex Technology Co. Limited, or CATL, is the world’s largest battery supplier dominating over 35% of the global battery market. CATL supplies batteries to several EV makers including Tesla Inc. TSLA and Nio Inc. NIO.
Earlier this month, it was reported that Chinese President Xi Jinping told CATL that he had mixed feeling about its status as the world’s largest battery maker. Xi said he is glad for CATL’s leading position and is also concerned about the risks involved.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
Read Next: Tesla’s China Rival Confident Of Doubling Sales To 250K, Hopes To Break Even Next Year