Chinese companies make their presence felt at IAA Mobility 2023
At the IAA Mobility 2023 in Munich, Germany, in September, the increasing number of Chinese car manufacturers, which are accelerating their overseas expansion, was a hot topic of discussion.
However, it is not only car manufacturers that are expanding overseas. Chinese battery and battery material manufacturers are also accelerating the construction of bases overseas. This is related to the expansion of their share of the electric vehicle market in the US and European markets, but also to the requirement under the US Inflation-Reduction Act (IRA) that at least 40% of the critical minerals used in drive batteries must be sourced from the US or a country or region that has a free trade agreement (FTA) with the US in order to receive tax credits for the purchase of electric vehicles. This could be considered a measure to meet this requirement.
From 2023 onwards, major Chinese manufacturers of drive batteries, such as CATL, BYD, Guoxian Gao Ke (Gotion), Bai Latitude ● Energy (EVE), Yuanjing Power (AESC) and Beehive Energy (Svolt), are accelerating their expansion into Europe, North America and South East Asia.
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Battery materials manufacturers are increasingly locating their plants in South Korea. An increasing number of companies are expanding into South Korea, which is a signatory to an FTA with the US, as a countermeasure against the US IRA.