Industry Value Chain

Chinaʼs Ownership Of The Supply Chain Extends Beyond Its Borders

China does not have significant geological deposits of battery raw materials, but companies have invested in overseas operations and in processing capacity at home

This is manifested as dominance in the midstream for chemical intermediates and active materials

Vertical integration is a strategic benefit as well as a cost advantage

Despite US FEOC rules prompting some operations to reduce their Chinese ownership stake, many non-Chinese upstream and midstream projects have been curtailed in 2024, leaving the overall picture unchanged

Chinaʼs supply chain dominance has led to intensely competitive conditions that are squeezing non-Chinese producers

Source: Content & analysis provided courtesy of CRU Group Distinguished Partner), BloombergNEF Distinguished Partner); Top chart shows production by ownership; bottom charts show capacity by location.

Extracted from the PDF; charts and images may read imperfectly.