[SMM Analysis] the release of the US Lithium National Blueprint is intended to get rid of the lag in development.

SM6, March 27, recently, the US Federal Advanced Battery Alliance (FCAB) released the "National Blueprint for Lithium batteries in the United States (2021-2030)," which stated the raw materials and battery materials of the lithium battery industry chain in the United States. Because the issuer itself is jointly composed of the US Department of Energy, the Department of Commerce, the Department of Defense and the State Department, the official background is strong. Therefore, to some extent, the report represents the long-term plan for the lithium power industry in the United States in the future.

In the report, FCAB puts forward goals for raw materials, battery materials, battery manufacturing, battery recycling and technology and talent reserve of the US lithium power industry chain, including:

But in the final analysis, what is the current situation of the lithium power industry in the United States?

In terms of the global competition pattern, in the current market, major countries and economies around the world have increased the size of the new energy industry one after another, and its layout in China is relatively early. Under the dual stimulation of domestic policy support and terminal subsidies, China has already formed a relatively perfect layout of the whole industry chain from raw materials to batteries and new energy vehicles and other terminals, and has cultivated a number of new energy industries such as Ningde era and Rong Bai in all aspects. Germany and other highly influential enterprises, as the world's second largest economy, have accounted for more than half of global new energy vehicle sales in the past few years. With the increasing acceptance of new energy vehicle companies by downstream consumers in recent years, the domestic market has gradually shifted from policy-oriented to consumption-oriented, forming a virtuous circle of supply and demand, while the energy storage and small power markets have also gradually entered the international market in recent years. The scale of production and marketing has been further expanded, and with the further expansion of China's new energy vehicles and small energy storage this year, China's lithium demand still has room for upside. While Europe has also acted frequently in this field in recent years, EU countries have promoted consumption in the era of post-superimposed epidemic of carbon emissions and stimulated economic recovery, the supply side has tightened restrictions on car companies with excessive carbon emissions, and promoted the electrified transformation of car companies. European car companies, led by Volkswagen, have increased the layout of battery manufacturing links, and actively introduced mainstream battery companies to invest and build factories in Europe, while the demand side has increased subsidies for purchasing. Superimposed financial allocations help downstream infrastructure manufacturing, reduce consumption tax, extend the exemption period of ownership tax, and stimulate the rapid growth of the new energy vehicle market and the lithium power industry. While in the United States, there has been little growth in the United States in recent years, and there has been little significant growth in the overall sales of new energy vehicles and the demand for upstream materials. With the continuous expansion of the demand of the lithium power industry in Central Europe and the continuous improvement of the industrial chain, the development is slightly sluggish.

What are the reasons for the disadvantage of American lithium electricity industry? We believe that the reasons are as follows: