Core Insights - The global battery supply chain is heavily reliant on China, with Chinese companies holding over 90% market share in key materials such as cathodes and anodes [6][7] - In 2024, Chinese companies are projected to account for 71% of the global sales share of battery cells, an increase of 6 percentage points from the previous year [4] - Chinese enterprises are expanding their manufacturing presence in Europe, increasing their market share in the region by 10 percentage points to nearly 40% [4] Supply Chain Dependency - The entire battery supply chain, from raw materials to battery cells, shows a dominant Chinese market presence, with over 90% share in major materials [6] - The high dependency on China poses risks to the global automotive industry, particularly in the context of electric vehicles (EVs) [2] Competitive Advantages - Chinese companies benefit from lower raw material costs, with China holding a 93% market share in high-quality graphite for anode materials and 46% in phosphate rock for cathode materials [6] - Japanese companies, once dominant due to their technological capabilities, have seen their market share diminish to single digits in certain materials as the demand for large-capacity batteries grows [6] Global Expansion Efforts - Chinese companies are actively building battery supply chains in resource-rich countries, such as establishing smelting plants in Indonesia and new cathode material factories in Morocco [7] - In response to geopolitical risks, countries like Japan and the U.S. are attempting to establish domestic supply chains but face significant challenges competing with China's established presence [7]