China is the largest electric car exporter on the planet. In 2023 he exported approximately 1.7 million electric vehicleswhich represents more than 30% of its total car exports. Nevertheless, Its international expansion It is being seriously conditioned by the tariffs that are imposing USA or the European Union, among other regions with very serious difficulties to compete with the Chinese electric car.
Largely the success of the country led by Xi Jinping in this industry strengthens its leadership in The production of lithium batteries. If we stick to China Fabrica electric cars 57% of batteries that these vehicles use. Catl and Byd are the largest lithium batteries manufacturers on the planet with A market share in 2023 34% and 16% respectively. This Asian country has reached this leadership position due to several factors.
On the one hand it is The largest producer in the world of lithium and rare earths, which are the main raw materials used in the manufacture of batteries. In addition, it controls the processing of these materials and is capable of producing large -scale batteries and with a very competitive price. There is currently no indicator that invites us to anticipate that His domain of lithium batteries You will be threatened in the medium term. Even so, the US government is trying to create the appropriate conditions to put an end to China’s leadership in the battery market.
South Korea is the strongest alternative to China in the battery industry
At the end of July LG Energy Solution, the LG subsidiary specialized in the design and manufacture of lithium batteries, He signed an agreement of 4.3 billion dollars to supply iron and lithium phosphate batteries (LFP) to Tesla for three years. This plan is backed by the current US government and seeks to reduce the global dependence of electric car manufacturers of the Chinese Giants Catl and Byd.
LG Energy Solution, Sk On and Samsung Sdi are the main battery manufacturers of South Korea
LG Energy solution is The biggest battery manufacturer outside Chinaand, although it is a South Korean company, it is the best asset that the US has to end the Chinese domain. Catl and Byd have in their favor their ability to produce high performance batteries and with a very competitive price, which has caused LG Energy Solution, Sk On and Samsung Sdi, which are the main battery manufacturers of South Korea, Lose market share continuously. In fact, According to the consultant SNE Research Its combined market share has been reduced by 5.4% between January and June 2025.
The Trump administration is determined to end this trend, and its strategy is to create in the US the necessary conditions to pave the way to South Korean batteries manufacturers and penalize Chinese producers. To carry out this idea has included A Catl, Byd, Envision Energy, Eve Energy, Gotion, Hithium and other Chinese batteries manufacturers in the list that lists the prohibited foreign entities. The purpose of this initiative is evident: it seeks to prevent US companies from buying batteries and components from China. If, despite this, they will be disqualified when accessing state subsidies.
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