THE symbolism was clear final June when Emmanuel Macron, surrounded by manufacturing facility employees, held up a smooth lithium battery in his proper hand and a mining lamp in his left. He was in Douai, a northern French metropolis with a coal mining historical past relationship again to the 1700s. The town is now additionally the positioning of a battery manufacturing facility, which might enable France to supply all elements of electric vehicles domestically. This manufacturing facility, Macron declared, represented an “financial and ecological revolution.”
Macron instantly acknowledged that France didn’t pull this off alone: “We introduced in traders from the opposite aspect of the world. They transferred their applied sciences. They helped prepare folks,” Macron stated, gesturing at a person beside him.
The person was Zhang Lei, the founding father of Envision, a outstanding Chinese language firm that makes wind generators and lithium batteries. Its battery arm is investing as much as €2 billion on this Douai manufacturing facility and, extra importantly, contributed the experience for environment friendly mass manufacturing. He and Macron grabbed markers and signed their names on the primary battery produced in Douai. “Thanks, Chairman, since you trusted us and since you did precisely what you stated you’d do,” Macron stated, trying straight into Zhang’s eyes.
In 2026, it’s OK to nerd out at events about batteries. Lithium batteries are turning solar and wind into 24/7 secure vitality sources. Battery-powered vehicles are shaking up the multitrillion-dollar automotive business and made Elon Musk the richest man on Earth. Lithium batteries even gained a Nobel Prize, and the US authorities now categorizes lithium as a “crucial mineral.”
Lithium’s rising tides lifted one set of boats greater than others—China’s battalion of battery firms. After many years of quiet progress, companies akin to CATL, BYD, Gotion Excessive-Tech, and Envision at the moment are major suppliers for the world’s EVs and vitality grids. In 2024, greater than 80 % of the world’s battery cells have been produced in China, in accordance with the Worldwide Vitality Company. Now these firms are increasing past China’s borders. Up to now decade they’ve constructed or introduced at the very least 68 factories outdoors China, in accordance with information collected by WIRED and the Rhodium Group, a New York–primarily based assume tank.
Collectively, per the Rhodium Group, the factories characterize an funding of greater than $45 billion in the remainder of the world. Additionally they mirror a giant shift in what manufacturing dominance appears like. “Made in China” was once—and nonetheless typically is—a label for affordable labor, knockoffs, and $5 devices. Now it additionally means state-of-the-art expertise assembled anyplace on this planet.
“We imagine it’s a brand new part. Now we have by no means actually seen that in Chinese language abroad investments,” says Armand Meyer, a senior analysis analyst at Rhodium Group. In line with his calculations, 2024 was the primary yr Chinese language EV and battery firms spent extra money constructing factories outdoors of China than inside. “They’re prepared to go away the home market, and they’re as aggressive as conventional Western gamers, or much more aggressive,” Meyer continues. “We expect it’s only the start.”
At present, a number of the world’s finest battery analysis comes from Chinese language universities and corporations, says Brian Engle, chairman of NAATBatt Worldwide, a US commerce affiliation for the battery business. And that’s as a result of China wager on it early.
When Engle toured a lab at China’s high engineering faculty in 2019, he noticed greater than 60 graduate college students constructing and testing battery cells. Shocked, he turned to an American educational on the tour and requested her what number of American universities they’d must lump collectively to seek out as many battery-focused postgrads. “And he or she stated we couldn’t,” he recalled. “We merely couldn’t.”
So it’s maybe no shock that Chinese language battery firms are dominant—and that the competitors between them is fierce. These days, native incentives and decrease transport prices make it such that opening a manufacturing facility abroad might be extra worthwhile than staying dwelling. CATL, the world’s largest lithium battery maker, reported in a current monetary submitting that its revenue margin is 29 % abroad versus practically 23 % in China. Different Chinese language firms, together with Gotion and EVE Vitality, even have reported increased revenue margins abroad.
Macron isn’t the one politician to herald a Chinese language battery plant’s arrival. The lovefest is nearly international: Brazil’s Luiz Inácio Lula da Silva rode in a BYD automobile with the corporate’s founder. Spain’s president held arms with CATL’s CEO. The governor of Illinois, JB Pritzker, shared a stage with Gotion’s chairman to announce a manufacturing facility in Manteno, Illinois.
However issues emerge as blueprints flip into huge vegetation. Manufacturing facility tasks typically embrace guarantees to rent regionally, however generally firms herald migrant labor. In Hungary, native media reported in July that CATL laid off greater than 100 workers at a manufacturing facility, most of them Hungarians, prompting the municipality to launch an investigation and raid the plant. CATL can be going through protests and a lawsuit in Hungary for its water use and environmental footprint—points generally confronted by battery factories worldwide.
The state of affairs would possibly sound oddly acquainted. When Apple constructed its expertise empire on the backs of Chinese language factories, the nation needed to reckon with whether or not it was benefiting from Apple’s victories or being exploited. As China’s battery expertise takes over the world, Chinese language firms are those now elevating these questions—of who finally advantages and who’s exploiting whom.
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