In the rapidly evolving world of electric vehicle production, China faces a critical turning point that could reshape the global green technology landscape. A recently revealed internal document from a major Chinese mining and recycling company exposes a startling reality: the nation's domestic reserves of critical battery materials are dramatically depleting.

The data, presented in a slide titled "China's Resource Status", provides a stark countdown of remaining mineral reserves at current extraction rates. For key battery metals like cobalt, lithium, and nickel - essential components in high-energy-density electric vehicle batteries - China's domestic supplies are approaching critical levels. In fact, for some minerals, the reserves are essentially exhausted.

This resource challenge explains China's aggressive geopolitical strategy over the past decade, particularly its strategic moves to control mineral extraction in regions like the Democratic Republic of Congo, which produces the majority of the world's cobalt. Currently, China must import 100% of raw cobalt ore to support its massive battery manufacturing infrastructure, despite being the world's undisputed leader in battery production.

The implications are profound. More than half of the world's electric vehicles are produced in China, and the country controls most mineral processing for battery production. Recognizing its dwindling natural resources, China is now investing heavily in alternative strategies, including extensive battery material recycling through companies like GEM.

Interestingly, while natural resources are declining, China is simultaneously purchasing the majority of its own electric vehicle supply. These end-of-life vehicles represent a significant opportunity for material recovery, with valuable minerals that can be extracted and repurposed. This approach demonstrates a sophisticated, forward-looking strategy to address potential supply chain challenges.

The global transition to electric transport is accelerating faster than most legacy analysts predicted, with battery chemistry evolving rapidly through technologies like LFP, sodium, and solid-state batteries. However, high-energy-density cells still predominantly rely on nickel, cobalt, and lithium - minerals that are becoming increasingly scarce in China's domestic reserves.

As the world races toward terawatt-hours of annual battery production, China's resource strategy will be critical in maintaining its current technological and manufacturing leadership. The coming years will likely see increased international partnerships, aggressive mineral acquisition strategies, and innovative recycling technologies emerging as potential solutions to this complex challenge.