China Drives Global EV Battery Supply Over Triple Demand

Recent advances in lithium battery technology by Chinese researchers could potentially double electric vehicle (EV) range and improve safety through a novel electrolyte design, though the technology remains in early stages and requires real-world testing. Meanwhile, global EV battery production has surged, led by Chinese manufacturers like CATL and BYD, resulting in supply exceeding demand by more than threefold amid cooling EV sales worldwide. This overcapacity is challenging domestic production efforts in countries such as Japan and the U.S. and driving downward pressure on prices and profitability. In response to charging limitations, Chinese EV start-up Nio is expanding battery-swapping stations, offering a rapid alternative to traditional charging that also reduces vehicle costs by separating battery ownership from the car. Nio's battery swap technology is well-established in China and is beginning to expand into Europe, supported by government subsidies aimed at building extensive swapping infrastructure. These developments reflect differing strategies to address EV adoption challenges, from battery innovation to infrastructure and business model changes.