How will Asian EV battery makers maintain global lead?

To maintain their global lead, Asian EV battery makers will invest in onshore facilities in the U.S. and Europe over the next few years. In China, higher export sales will help offset domestic oversupply pressures, but a shakeout of weaker players is likely.

Why are automakers looking to Asian partners for lithium phosphate cells?

But most automakers are now looking to Asian partners for cells after struggling to make them themselves or losing faith in European suppliers. The Stellantis-CATL project in Spain will rely on the Chinese partner’s expertise with lithium iron phosphate, or LFP cells, which are cheaper than the technology backed by most European manufacturers.

Will China's battery industry outperform the global market in 2023?

By our estimates, utilization at battery factories in China languished at under 50% over the first eight months of 2023. Exports are helping to offset some of the pain, with China's share of the global battery market on the rise. We believe battery makers with stronger export channels and global alliances will outperform in the coming years.

Why are Asian companies investing in EV battery supply chains?

Asian companies have invested heavily to gain global dominance in electric vehicle (EV) supply chains. To keep their lead, many EV battery suppliers are increasingly investing abroad. Leading players with strong global partnerships will stay on top amid this industry shift. Some weaker ones in China may not survive.

Why is Hyundai launching a battery plant in Indonesia?

Hyundai and LG Energy Solution have opened a $1.1bn battery cell plant in Indonesia as the south-east Asian country works to build an electric vehicle ecosystem. The launch of the country’s first battery plant on Wednesday is part of Indonesia ’s push to move up the global EV supply chain.

Will South Korea build a new battery factory?

Investment minister Bahlil Lahadalia said the South Korean companies would begin constructing the second phase of the battery cell factory, which will have an annual production capacity of 20 gigawatt hours, with an investment of $2bn. The battery cells from the Indonesian plant will be used in Hyundai and Kia’s EV models.