China will see off challengers in EV batteries
Significance The battery is the most expensive and performance-critical element of an electric vehicle (EV). China's dominance in the sector therefore has strategic implications, because the global transition towards EVs is key to achieving international targets to mitigate climate change, and to individual nations’ wealth generation prospects. Impacts The car industry worldwide will increasingly depend on access to cost-effective batteries, which in the short term means Chinese suppliers. China’s dominance of the battery supply chain and fast-growing EV market ties foreign automotive leaders to Chinese partners and markets. Extensive government support would be needed to compete with Chinese firms’ dominance in the battery and critical mineral supply chains.