A third Chinese company has received permission to start transporting lithium batteries via rail. For now, the transportation of lithium only concerns a trial, but with it being the third such instance, it is clear that China sees possibilities for lithium on the tracks.
Hubei Yiwei Power is the lucky company to receive a permit for the trial. The first lithium battery train from the Hubei province departed on 18 March. Even though lithium batteries are classified as dangerous goods, being flammable and difficult to extinguish once on fire, China sees enough benefits to move ahead with rail transport either way.
Chinese officials highlight the larger capacity on rail, lower costs, timeliness and environmental benefits. They also underline their faith in the safety of lithium batteries on rail. Moreover, making use of the railways is supposed to boost the global competitiveness of China’s battery industry.
All the way to Europe
The first time China allowed lithium batteries on the rail network was in late 2023, when it set up a dedicated route to Moscow for electric vehicles. In November 2024, another battery manufacturer set up a domestic rail freight service for its product.
Despite being a domestic initiative, the Chinese lithium transport trial could bring significant change to the electric vehicle market in Europe as well. Currently, over 90 per cent of lithium batteries in China are moved via road, but Chinese officials point out that rail can move the batteries over long distances internationally (including to Europe). A significant transfer of volumes to the railways is expected to reduce the costs of the electric car industry as a whole.