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China's Battery Giants Power Global Green Revolution
20 Jan
Summary
- China now produces over 80% of global battery cells.
- Chinese battery firms invest billions building 68 factories abroad.
- Overseas operations show higher profit margins for Chinese firms.
Chinese battery manufacturers are at the forefront of the global energy transition, with over 80 percent of the world's battery cells produced in China as of 2024. Companies such as CATL, BYD, and Envision have become primary suppliers for electric vehicles and energy grids worldwide.
These firms are now significantly expanding their global footprint, having established or announced at least 68 factories outside China in the past decade. This outward investment totals over $45 billion, reflecting a new era of Chinese manufacturing dominance characterized by state-of-the-art technology.
This global expansion is proving lucrative, with Chinese battery companies frequently reporting higher profit margins on overseas operations compared to their domestic factories. This trend suggests a strategic shift, with companies finding it more profitable to build and operate plants internationally, driven by local incentives and reduced shipping costs.
