Chinese companies are aggressively expanding their global battery supply chains despite rising protectionist barriers in the West. As nations impose tariffs and restrictions on critical minerals and EV components, Chinese firms are securing raw materials, building overseas factories, and forming strategic partnerships to maintain dominance in the electric vehicle and energy storage sectors. This push comes amid geopolitical tensions over technology access and supply chain security.
The strategy involves vertical integration—from lithium mines in Africa to cathode plants in Europe and Southeast Asia—allowing Chinese battery giants like CATL and BYD to bypass trade hurdles. Meanwhile, Western automakers face challenges securing stable, affordable battery supplies as China controls over 70% of global lithium refining and 60% of cathode production. Analysts warn this could delay EV transitions and increase costs for Western consumers.
Governments from the U.S. to the EU are responding with incentives to build domestic battery capacity, but industry experts say it will take years to match China's scale and efficiency. The race is no longer just about technology—it's about control of the entire battery value chain, from mine to market.
Source: Financial Times Companies · Summarized by HeadlinesBriefing