Chinese EV Batteries Are Eating the World | WIREDSkip to main contentMenuSECURITYPOLITICSTHE BIG STORYBUSINESSSCIENCECULTUREREVIEWSMenuAccountAccountNewslettersSecurityPoliticsThe Big StoryBusinessScienceCultureReviewsChevronMoreExpandThe Big InterviewMagazineEventsWIRED InsiderWIRED ConsultingNewslettersPodcastsVideoMerchSearchSearchSign InSign InZeyi YangThe Big StoryJan 20, 2026 6:00 AMChinese EV Batteries Are Eating the WorldChina’s lithium batteries aren’t always “made in China.” Companies like BYD and CATL are building factories on nearly every continent.ILLUSTRATION: MOJO WANGCommentLoaderSave StorySave this storyCommentLoaderSave StorySave this storyTHE symbolism was clear last June when Emmanuel Macron, surrounded by factory workers, held up a sleek lithium battery in his right hand and a mining lamp in his left. He was in Douai, a northern French city with a coal mining history dating back to the 1700s. The city is now also the site of a battery factory, which would allow France to produce all parts of electric vehicles domestically. This factory, Macron declared, represented an “economic and ecological revolution.”The China IssuePHOTOGRAPH: ANDRIA LOHere are 23 ways China is rewiring the future.Macron immediately acknowledged that France didn’t pull this off alone: “We brought in investors from the other side of the world. They transferred their technologies. They helped train people,” Macron said, gesturing at a man beside him.The man was Zhang Lei, the founder of Envision, a prominent Chinese company that makes wind turbines and lithium batteries. Its battery arm is investing up to €2 billion in this Douai factory and, more importantly, contributed the expertise for efficient mass production. He and Macron grabbed markers and signed their names on the first battery produced in Douai. “Thank you, Chairman, because you trusted us and because you did exactly what you said you would do,” Macron said, looking straight into Zhang’s eyes.In 2026, it’s OK to nerd out at parties about batteries. Lithium batteries are turning solar and wind into 24/7 stable energy sources. Battery-powered cars are shaking up the multitrillion-dollar automotive industry and made Elon Musk the richest man on Earth. Lithium batteries even won a Nobel Prize, and the US government now categorizes lithium as a “critical mineral.”Lithium’s rising tides lifted one set of boats more than others—China’s battalion of battery companies. After decades of quiet growth, firms such as CATL, BYD, Gotion High-Tech, and Envision are now primary suppliers for the world’s EVs and energy grids. In 2024, more than 80 percent of the world’s battery cells were produced in China, according to the International Energy Agency. Now those companies are expanding beyond China’s borders. In the past decade they’ve built or announced at least 68 factories outside China, according to data collected by WIRED and the Rhodium Group, a New York–based think tank.Collectively, per the Rhodium Group, the factories represent an investment of more than $45 billion in the rest of the world. They also reflect a big shift in what manufacturing dominance looks like. “Made in China” used to be—and still often is—a label for cheap labor, knockoffs, and $5 gadgets. Now it also means state-of-the-art technology assembled anywhere in the world.“We believe it’s a new phase. We have never really seen that in Chinese overseas investments,” says Armand Meyer, a senior research analyst at Rhodium Group. According to his calculations, 2024 was the first year Chinese EV and battery companies spent more money building factories outside of China than within. “They are ready to leave the domestic market, and they are as competitive as traditional Western players, or even more competitive,” Meyer continues. “We think it’s just the beginning.”Today, some of the world’s best battery research comes from Chinese universities and companies, says Brian Engle, chairman of NAATBatt International, a US trade association for the battery industry. And that’s because China bet on it early.When Engle toured a lab at China’s top engineering school in 2019, he saw more than 60 graduate students building and testing battery cells. Surprised, he turned to an American academic on the tour and asked her how many American universities they’d have to lump together to find as many battery-focused postgrads. “And she said we couldn’t,” he recalled. “We simply couldn’t.”So it’s perhaps no surprise that Chinese battery companies are dominant—and that the competition between them is fierce. Nowadays, local incentives and lower shipping costs make it such that opening a factory overseas can be more profitable than staying home. CATL, the world’s largest lithium battery maker, reported in a recent financial filing that its profit margin is 29 percent overseas versus nearly 23 percent in China. Other Chinese companies, including Gotion and EVE Energy, also have reported higher profit margins overseas.Macron isn’t the only politician to herald a Chinese battery plant’s arrival. The lovefest is virtually global: Brazil’s Luiz Inácio Lula da Silva rode in a BYD vehicle with the company’s founder. Spain’s president held hands with CATL’s CEO. The governor of Illinois, JB Pritzker, shared a stage with Gotion’s chairman to announce a factory in Manteno, Illinois.But problems emerge as blueprints turn into massive plants. Factory projects often include promises to hire locally, but sometimes companies bring in migrant labor. In Hungary, local media reported in July that CATL laid off more than 100 employees at a factory, most of them Hungarians, prompting the municipality to launch an investigation and raid the plant. CATL is also facing protests and a lawsuit in Hungary for its water use and environmental footprint—issues commonly faced by battery factories worldwide.The situation might sound oddly familiar. When Apple built its technology empire on the backs of Chinese factories, the country had to reckon with whether it was benefiting from Apple’s victories or being exploited. As China’s battery technology takes over the world, Chinese companies are the ones now raising these questions—of who ultimately benefits and who is exploiting whom.What Say You?Let us know what you think about this article in the comments below. Alternatively, you can submit a letter to the editor at mail@wired.com.CommentsBack to topTriangleMore From the China IssueHere are 23 ways China is rewiring the futureWhy your next robot coworker will probably be from ChinaHow a Western obsession made eastern China the crystal capital of the worldTrump declared a moon race with China. The US is losingChina’s Gen Z women are driving an AI boyfriend boomInside the Chinese government’s algorithm registryYou’ve never heard of China’s greatest sci-fi novelIn your inbox: The biggest tech news coming out of ChinaZeyi Yang is a senior writer at WIRED, covering technology and business in China. He cowrites Made in China, a weekly newsletter that gives readers a clear-eyed, unbiased view of the biggest tech news coming out of the country. Prior to joining WIRED, he was China reporter at MIT Technology ... Read MoreSenior WriterTopicslongreadsBatteriesChinaElectric VehiclesmanufacturingThe China IssueRead MoreSave $200 With These Sealy Promo Codes and Mattress DealsWhether you’re switching from springs to memory foam or just want to sleep cooler this summer, these Sealy mattress deals will have you waking up refreshed—and with cash left in your wallet.Save up to 30% With These Purple Promo Codes and Deals This JanuaryOn the hunt for the perfect mattress or pillow? 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China’s dominance in the electric vehicle (EV) battery market is rapidly reshaping global energy and manufacturing landscapes, a shift underscored by investments and technological advancements originating from companies like BYD and CATL. This expansion, facilitated by substantial foreign investment and technology transfer, represents a fundamental realignment of global economic power. The narrative surrounding this shift is complex, reflecting both opportunities and potential challenges.

Initially, the symbolic unveiling of a French battery factory—a collaborative effort between French and Chinese partners—highlighted a willingness to embrace foreign expertise and technology. This mirrored a broader trend of nations seeking to leverage China's capabilities in advanced manufacturing. Zhang Lei, founder of Envision, played a crucial role in this collaboration, demonstrating the willingness of Chinese companies to share their know-how and establish partnerships worldwide. The investment of over $45 billion in factories outside of China, spearheaded by companies like CATL, Gotion High-Tech, and EVE Energy, further solidified this trend. This investment isn't merely about production capacity; it signifies a strategic move to control the supply chain of a critical component powering the global transition to electric vehicles.

The rise of Chinese battery companies has been accompanied by substantial advancements in battery research and development. Chinese universities and engineering schools have invested heavily in this area, fostering a talent pool that surpasses that of many Western nations. The sheer scale of research conducted at institutions like China’s top engineering school—with over 60 graduate students actively working on battery cell development—demonstrates a rapid pace of innovation. This head start has allowed Chinese companies to rapidly close the technological gap with Western competitors, often offering more competitive pricing and performance.

However, this rapid ascent isn't without its complications. The shift in manufacturing dominance raises important questions about economic dependency and potential exploitation. The experience of nations like France, where local employees were laid off at a CATL-operated factory in Hungary—despite promises of local hiring—reveals a potential disconnect between investment and local benefit. The Hungarian situation highlights the risk of relying on foreign investment without adequate safeguards to protect local workers and ensure responsible environmental practices.

Furthermore, the concentration of battery production in China raises concerns about supply chain vulnerabilities. The reliance on a single source for a critical component—particularly as the demand for EVs continues to surge—poses a risk. This vulnerability is compounded by the potential for intellectual property issues and concerns about environmental standards at some Chinese factories. Instances of water use and environmental impact at CATL's operations in Hungary, while common across the battery industry globally, underscore the need for rigorous oversight and sustainable manufacturing practices.

Ultimately, the transformation driven by Chinese battery companies reflects a broader shift in global technological and economic influence. This trend compels nations to re-evaluate their strategies for energy transitions, supply chain security, and technological innovation. The rise of China in the battery market represents a pivotal moment, prompting a global reassessment of power dynamics and potential vulnerabilities.