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Concerns over supply risks of critical metals used in electric vehicle (EV) batteries are frequently underscored as impediments to the widespread development of EVs. With the progress to achieve carbon neutrality by 2060 for China, projecting the critical metals demand for EV batteries and formulating strategies, especially circular economy strategies, to mitigate the risks of demand-supply imbalance in response to potential obstacles are necessary. However, the development scale of EVs in the transport sector to achieve China's carbon neutrality is unclear, and it remains uncertain to what extent circular economy strategies might contribute to the reduction of primary raw materials extraction. Consequently, we explore the future quantity of EVs in China required to achieve carbon neutrality and quantify the primary supply security levels of critical metals with the effort of battery cascade utilization, technology substitutions, recycling efficiency improvement, and novel business models, by integrating dynamic material flow analysis and national energy technology model. This study reveals that although 18%–30% of lithium and 20%–41% of cobalt, nickel, and manganese can be supplied to EVs through the reuse and recycling of end-of-life batteries, sustainable circular economy strategies alone are insufficient to obviate critical metals shortages for China's EV development. However, the supplementary capacity offered by second-life EV batteries, which refers to the use of batteries after they have reached the end of their first intended life, may prove adequate for China's prospective novel energy storage applications. The cumulative primary demand for lithium, cobalt, and nickel from 2021 to 2060 would reach 5–7 times, 23–114 times, and 4–19 times the corresponding mineral reserves in China. Substantial reduction of metals supply risks apart from lithium can be achieved by the cobalt-free battery technology developments combined with efficient recycling systems, where secondary supply can satisfy the demand as early as 2054. [Display omitted] • Circular economy strategies alone are insufficient to obviate metals shortages. • China's electric vehicle development might face shortage risks of Li, Co, and Ni. • 1/5–2/5 of critical metals can be supplied through reuse and recycling. • Cobalt-free battery technology should be combined with efficient recycling systems. [ABSTRACT FROM AUTHOR]

The Paris Agreement calls for countries to pursue efforts to limit global-mean temperature rise to 2 °C compared to the pre-industrial level. To achieve this, it is essential to accelerate the low-carbon transition of energy system. China is the largest carbon emitter and plays a decisive role in mitigating global climate change. The transition pathways for China to contribute to meeting the global 2 °C target, however, have not been extensively explored. Here we develop a bottom-up national energy technology model (C3IAM/NET), a linear optimization model, to reveal the energy consumption, carbon emissions and technology pathway at the national and sectoral levels in line with the 2 °C climate target. Results show that China's carbon emissions need to peak at the year 2023 and reduce to 3.56 GtCO 2 by mid-century. During the 2020–2050 planning horizon, the remaining carbon budget is estimated to be controlled within 234 GtCO 2 , with a cumulative emission reduction of 165.3 GtCO 2 , of which the power sector bearing the largest share of responsibility, followed by the industry, transportation and building sectors. We project that China's primary energy consumption needs to peak before 2040 and the proportion of non-fossil energy in energy structure needs to reach 76% by 2050, and about 88.4% of electricity production comes from renewables and nuclear energy. [Display omitted] • The economically low-carbon transition pathway of China's energy system is discovered. • The optimal carbon emissions pathway at national and industrial levels is analyzed. • China's CO 2 emissions need to peak at the year 2023 to achieve 2 °C target. • The power sector bearing the largest share of CO 2 emission reduction responsibility. • The proportion of non-fossil energy in total energy needs to reach 76% by 2050. [ABSTRACT FROM AUTHOR]

The large-scale application of hydrogen steelmaking technology is expected to substantially accelerate the decarbonization process of the iron and steel industry. However, hydrogen steelmaking projects are still in the experimental or demonstration stage, and scientific investment decision-making methods are urgently needed to support the large-scale development of the technology. When assessing the investment value, existing studies usually only consider the intrinsic project value under a specific pathway, while ignoring the option value under realistic multiple uncertainties in terms of technology, market, and policy, leading to an underestimation of the investment value. To address this issue, this study constructs a real options model to explore the optimal investment timing and revenue of the hydrogen steelmaking project, by taking into account multi-dimensional uncertainties stemming from price fluctuations in the steel market, the development of the carbon market, and technological advances. Additionally, the impacts of various subsidy policies on the investment strategy are also investigated. Least Squares Monte Carlo method is applied to overcome computational challenges posed by dynamic programming under multi-dimensional uncertainties. The results show that: (i) Investment is not recommended based on current crude steel price and hydrogen price. (ii) When the annual reduction rate of hydrogen price reaches 5%, the optimal investment timing would advance to 2036. (iii) On this basis, with the introduction of a 20% green hydrogen subsidy policy, the optimal investment timing would be further brought forward to 2033. The implementation of tax incentives would significantly increase the investment value. The investment value would surge from 170 million CNY to 262 million CNY as the tax rate decreases from 20% to zero. The findings could provide reasonable suggestions for investment decisions under realistic volatile environments, as well as scientific references for policy design, thus facilitating the large-scale and high-level development of hydrogen-based steelmaking technology. • Considering multiple uncertainties in hydrogen steelmaking project decision making. • Building Real Option Model for investment strategy of hydrogen steelmaking project. • Best time to invest is 2036 at 5% decline rate of H 2 price and current steel price. • Analyzing incentive effects of one-time subsidy, H 2 incentives and tax incentives. • Subsidy for H 2 is the most effective incentive to advance the investment timing. [ABSTRACT FROM AUTHOR]