China's battery makers race to invest abroad to avoid western barriers

Chinese battery manufacturers, including major players like CATL and BYD, are significantly increasing their investments outside of China to establish a global supply chain. This strategic shift is a response to growing protectionism and localization efforts in Western markets, which aim to reduce reliance on Chinese-made battery materials, components, and finished cells. Since 2023, Chinese companies have announced nearly $90 billion in overseas battery-related investments, with $12 billion in 2026 alone, primarily in cell and materials manufacturing.