According to the Spanish newspaper El País on December 8, the efforts of the European Union and the United States to confront China in the field of electric vehicles have had no effect, at least for now. Chinese locomotives have not only maintained their advantage, but have further strengthened it with a strong domestic market and expansion into other regions such as Europe. For example, according to a study by Natixis, China already accounts for 41% of the world's electric vehicle exports. That's 20 percentage points higher than in the whole of 2019, before the pandemic.
This growth is due not only to Chinese companies, but also to European and American car companies that produce in China, such as Tesla. The company owned by American tech tycoon Elon Musk exports a large number of vehicles from its Shanghai factory. In terms of sales, Chinese brands account for 52% of global plug-in vehicle registrations, including electric vehicles and plug-in hybrids, totaling 7 million units. According to the aforementioned study, European brands lag far behind, with less than 3 million units, but higher than American brands (just over 2 million).
Among the fastest-growing Chinese companies, BYD is the brand that landed in Spain this year, and in October it set a record: for the first time in the world, it sold more than 300,000 plug-in cars in a single month. Its best-selling models are the BYD Song (plug-in hybrid) and the BYD Yuan plus (electric) sold in Asia.
This week's EU-China summit comes more than two months after Brussels launched a countervailing investigation into Chinese-made electric vehicles. In this regard, China's first person said that China's industrial development is not driven by subsidies.
If China has a clear advantage in the EV market, it becomes even more pronounced along the battery value chain. From January to September 2023, Chinese companies produced 63% of the world's EV batteries, with CATL being the largest producer: accounting for 37% of the market share. It is followed by BYD (which is not only an automaker, but also produces its own batteries and components) and South Korea's LG New Energy. Most notably, China is accelerating its capture of the battery market, with a market share of 35% since 2020, so its weight in the sector has almost doubled in just three years. This is happening at a time when Europe is trying to attract battery production projects.
China not only produces 2 3 batteries, but also its dominance over raw materials is obvious. According to a report by Natixis, by 2025, China will have a very high share of the refining of key materials for batteries: 71% manganese, 67% cobalt, 54% lithium and 39% nickel. (Compiled by Han Chao).
On September 8, people in Munich, Germany, visited BYD Auto at the auto show. (Associated Press).