2 1 Shi Ji Jing Ji Bao Dao·2025-08-20 14:12Core Insights - The report from the consulting firm Rongding indicates that in 2024, China's overseas investment in the electric vehicle (EV) industry chain will surpass domestic investment for the first time, with overseas investment reaching $16 billion compared to $15 billion domestically [1] - A significant portion of this overseas investment, approximately 74%, is concentrated in the battery sector, highlighting the internationalization of Chinese battery manufacturers [1] - Southeast Asia has emerged as a key destination for Chinese battery manufacturers, with several companies announcing plans to establish production facilities in the region [1][2] Investment Trends - Major Chinese battery manufacturers, including Yiwei Lithium Energy, XINWANDA, and CATL, are actively investing in Southeast Asia, with numerous projects announced in 2023 [1][2] - Notable investments include a $5.9 billion nickel resource and battery industry project in Indonesia and a new battery factory in Vietnam costing up to $2 billion [2] - The trend of Chinese battery manufacturers expanding into Southeast Asia is driven by the saturation of domestic production capacity and favorable government policies in the region promoting EV adoption [4] Market Dynamics - The demand for lithium batteries in Southeast Asia is expected to grow significantly due to government initiatives aimed at increasing EV penetration [4][8] - Indonesia is positioning itself as a key player in the global battery supply chain, leveraging its abundant nickel and cobalt resources to establish a vertically integrated production model [7] - Malaysia is also becoming a hub for battery production, supported by its strategic location and government policies aimed at promoting renewable energy and EV adoption [8] Challenges and Opportunities - The changing international trade landscape, including tariffs imposed by the U.S., has prompted Chinese lithium battery companies to seek alternative markets [5][6] - Despite the potential for growth in Southeast Asia, challenges such as trade protectionism and political instability in the region could pose risks for Chinese companies [10] - The electric vehicle market in Southeast Asia is projected to grow, with sales expected to reach 204,000 units in 2023 and a compound annual growth rate of 22% from 2024 to 2029 [10]