Chinese Lithium Battery Industry Chain's Global Push Gains Traction

Chinese lithium battery industry chain enterprises are continuously accelerating their pace of overseas expansion.

Recently, from top-tier enterprises increasing investments or commencing construction of overseas plants, to the lock-in of large orders, and rising expectations for new energy vehicle exports, China's lithium battery industry is expanding into the global market through synergistic industry chain efforts. This will not only help related enterprises address challenges brought by international regulations but also, leveraging technological and capacity advantages, may further enhance Chinese companies' voice in the global industry.

At this stage, accelerating overseas expansion has become one of the important directions for the globalization of domestic lithium battery industry chain enterprises, potentially profoundly impacting the development landscape of the industry chain.

Accelerated Overseas Layout: Synergistic "Going Global" of the Lithium Battery Industry Chain Gains Momentum

In recent months, domestic lithium battery industry chain enterprises have frequently taken actions to establish overseas presence, from battery leaders commencing plant construction to material companies following up with localized support; from upgrades in overseas capacity planning by new energy vehicle brands to the signing of large orders, the trend of the industry chain "going global" has become increasingly clear, covering core global markets such as Europe, North America, and Asia, demonstrating strong globalization momentum.

First, the process of building plants in core battery segments has significantly accelerated, with top-tier enterprises making moves in key markets.

On November 27, CATL and Stellantis Group officially launched the construction of their joint venture battery factory in Zaragoza, Spain. The battery plant is planned with an annual capacity of 50 GWh (focusing on LFP battery production), and is expected to commence production by the end of 2026, and will be operated by a joint venture company owned 50/50 by both parties.

In early November, EVE revealed that its battery factory in Hungary will adopt mature battery technology validated in the Chinese market to provide European customers with high-performance large cylindrical battery products. The plant is planned with an annual capacity of 28 GWh, has currently entered the critical phase of electromechanical installation and debugging, and is expected to be completed and operational in 2027.

On October 29, Sunwoda announced plans to invest no more than $482 million to build the second phase of a green energy lithium battery factory project in Thailand, with a total planned capacity of 17.4 GWh, to enhance its ability to serve international customers. On December 2, Lopal stated that its subsidiary, Liyuan (Asia-Pacific), received an order for 106,800 mt of LFP materials from Sunwoda's Thai subsidiary. This also indicates Sunwoda's strategic determination to accelerate its expansion into overseas markets.

On October 28, Gotion High-tech's battery super factory project in Šurany, Slovakia officially commenced. The first phase is planned to have an annual capacity of 20GWh and is expected to start trial production in 2026. Future products will primarily be exported to the EU market.

Material enterprises are also following up with overseas supporting layouts. Recently, Tinci, an electrolyte company, broke ground on its first North American electrolyte factory in Baytown, Texas. Upon completion, it will have an annual capacity of 200,000 mt of electrolyte.

In addition, automakers are stepping up their overseas expansion, which is expected to further provide downstream demand support for the lithium battery industry chain going global.

Great Wall Motor revealed its European expansion plan, aiming to achieve an annual production of 300,000 units by 2029 in the region. It is currently evaluating candidate locations such as Spain and Hungary for its first European vehicle assembly plant.

Shi Qingke, President of Great Wall International, stated that the overseas factories planned by Great Wall Motor will produce a variety of power types including traditional internal combustion engine vehicles and pure electric vehicles. Currently, labor and logistics costs are one of the key factors in the company's decision-making for plant construction. The company will closely monitor changes in EU industrial policies. He emphasized that all business plans must undergo rigorous scrutiny to ensure that Great Wall Motor does not face excessive pressure due to long-term substantial investments.

In terms of the market, overseas lithium battery orders have shown impressive performance, confirming high market prosperity.

On November 20, CATL signed a contract with a Japanese company to jointly develop a 2.4GWh grid-level ESS project in Japan. CATL will provide ESS batteries for the project and hold partial ownership of the power station. Previously, CATL had secured a 1GWh ESS supply order from AI.net LLC.

On November 19, EVE signed an agreement with Swedish ESS system integrator VimabBESS AB. Both parties will jointly promote the deployment of a 1.48GWh ESS project in Northern Europe. EVE will provide high-performance ESS batteries, ESS products, and corresponding technical support for the project, with the first batch of orders scheduled to ship in December this year.

Overall, on one hand, domestic brand automakers such as BYD, Chery, Great Wall, Geely, and GAC are setting up factories in multiple locations including Europe and Southeast Asia, deeply integrating into local markets through localized production. On the other hand, overseas EV/ESS orders continue to show high growth, presenting a broad market prospect. This provides strong market support for domestic industry chain enterprises to set up factories overseas. In this context, leading Chinese battery companies and upstream material enterprises are accelerating their pace of building factories overseas, further enhancing the regional localization supply capability of Chinese enterprises globally. This will undoubtedly help domestic industry chain enterprises seize the early market opportunities abroad and enhance their international competitiveness. 02

Opportunities and Challenges Coexist

Notably, in terms of domestic policies, the direction for the internationalization of the green industry has been clarified. On December 1, Li Yuecheng, Secretary of the Party Leadership Group and Minister of the Ministry of Industry and Information Technology, said in an article titled "Accelerating the Green and Low-Carbon Transformation of Chinese Manufacturing to Promote Global Sustainable Development" published in China Daily, emphasizing the need to strengthen international cooperation in the green industry. Chinese manufacturing will adhere to the principles of extensive consultation and joint contribution, make good use of bilateral and multilateral international cooperation mechanisms, and deepen exchanges and cooperation in green technology, green equipment, green trade, and green standards. It encourages leading Chinese enterprises in PV, wind power, lithium batteries, and NEVs to "go global," investing in and constructing green energy projects in countries along the Belt and Road Initiative, and promoting green infrastructure and transportation solutions. Enterprises are also encouraged to participate in the formulation of international green and low-carbon rules to enhance their international compliance capabilities.

In terms of overseas policies, regional regulations such as the EU's New Battery Regulation and the US Inflation Reduction Act (IRA) impose mandatory requirements for localized battery production and raw material traceability. Localized production has become an important way for foreign enterprises to avoid trade barriers and reduce logistics costs. The overseas expansion of China's lithium battery industry chain enterprises is a precise measure to adapt to regional rules and consolidate market share.

However, overseas expansion also faces certain challenges. Establishing factories abroad involves substantial capital investment, long cycles, and multiple uncertainties such as local policy changes, cultural differences, and supply chain integration. For example, Great Wall Motor emphasized the need to rigorously scrutinize business plans to mitigate risks associated with long-term, large-scale investments when planning overseas factory construction. Additionally, overseas markets pose further tests for Chinese enterprises in terms of localized operations and brand building.

Currently, domestic policy support and overseas market demand are forming a joint force that will continue to drive Chinese enterprises to deepen their global layout. In the future, as overseas capacity is gradually released and orders continue to materialize, China's lithium battery industry chain enterprises will further consolidate their leading position globally, providing strong support for the transformation and upgrading of the global energy sector.

Please note that this news is sourced from http://www.cbea.com/djgc/202512/298886.html and translated by SMM.