Since 2019, China, Japan and South Korea have started to speed up the electrification of water transportation, in an on-going effort to improve their transport system and reduce dependency on fossil fuel vehicles. In 2020, despite the ongoing Covid-19 pandemic, the electrification of vessels has not shown any sign of slowing down in this region. Over the coming years, China, Japan and South Korea have all revealed ambitious plans for the electrification of water transportations.
Roskill’s White Paper reviews latest development of electrifying water transportation in China, Japan and South Korea and analyses the reasons of East Asian advances in electric vessels. The success of electric transportation is very dependent on the battery technology. The paper presents valuable insights on lithium-ion battery systems and chemistry type suitable for electric vessels.
In the long term, 60% of Chinese civil shipping vessels are forecast to be electrified. Roskill estimates this would create a potential demand for roughly 150GWh lithium-ion batteries. Correspondingly, the demand of cathode materials is expected to total 0.4Mt, requiring 62kt LCE of lithium products. Roskill’s policy analysis also identifies potential policy options that could reduce barriers and contribute to faster and safer adoption of electric ships.
Based on Roskill’s primary research and forecasting models, the paper outlines:
• Recent development of electrifying water transportation in East Asia
• Motivation: Why East Asian countries speed up electrification of vessel fleet
• Battery manufacturers fight for developing vessel lithium-ion battery system
• Battery technology and battery materials demand
• Implications for rare earths demand
• Future Development
Kevin Shang 