Over the past decade, China has poured $143 billion in foreign investment into its electric vehicle (EV) and battery manufacturing sectors, with BYD, CATL and other giants expanding into markets in Europe, Asia, Africa and Latin America.
According to independent research firm Rhodium Group, China will start investing more in overseas supply chains and manufacturing facilities than in domestic projects starting in 2024 for the first time. This is part of the country’s “globalization” strategy — the aim is to maintain control over the entire value chain, from raw materials to finished products.
The largest investments are in Indonesia ($22 billion) and Hungary ($18 billion). Hungary has strengthened ties with China under Prime Minister Viktor Orbán, and the country is becoming the second largest battery producer in Europe after China.
Indonesia is also a major player in the global market with its nickel production — more than two-thirds of the world’s supply in 2024. Chinese companies control about 75% of the production and processing capacity in Indonesia.
While the Asian market has long been dominated by Japanese automakers, China’s lag in electric vehicles (EVs) has created new opportunities for it.
Overall, Chinese companies are expanding their production capacity by building new plants in Europe, Asia, and Latin America. For example, CATL has already built plants in Germany, Hungary, Indonesia, and Spain, while BYD is building its first electric car factory in Europe in Hungary.
According to experts, Beijing is systematically reshaping the global EV supply chain around its industrial and geopolitical interests.
