Asger Risom
For the first time since records began, China’s electric vehicle industry is investing more money into factories and production facilities abroad than within its own borders — a shift driven by rising domestic competition and global trade tensions.
For the first time since records began, China’s electric vehicle industry is investing more money into factories and production facilities abroad than within its own borders — a shift driven by rising domestic competition and global trade tensions.
Overseas Investment Surpasses Domestic Spending
In 2024, Chinese EV makers invested more money overseas than at home — a first since data collection began in 2014. The trend marks a dramatic shift in strategy for one of the world’s most aggressive EV industries.
Domestic Investment Plummets
Rhodium Group reports that domestic EV investment in China dropped from $41 billion in 2023 to just $15 billion in 2024. In 2022, that number had peaked at over $90 billion.
Battery Factories Lead Foreign Expansion
Approximately 74% of Chinese EV-related investment abroad in 2024 went toward battery production facilities, highlighting how critical battery tech has become in the global EV race.
Assembly Plants Are on the Rise
In addition to battery factories, Chinese automakers are rapidly expanding vehicle assembly operations in international markets — a trend expected to accelerate as export barriers increase.
Geopolitics Drive Strategic Relocation
Trade tensions and regulatory pushback in markets like the European Union have prompted Chinese EV firms to localize production. This approach helps bypass tariffs and political resistance.
Brazil Becomes a Manufacturing Hub
Great Wall Motor and BYD both opened factories in Brazil this year. BYD began operations in July, while Great Wall inaugurated its first facility just this August — with more expansion plans underway.
Europe Sees Increased Activity
Battery supplier Envision launched production at its first French factory in June, signaling China’s growing industrial footprint across Europe amid shifting supply chain strategies.
Global Competition Fuels the Shift
With Tesla and legacy automakers intensifying competition worldwide, Chinese EV makers are diversifying their production bases to secure market share — and stay ahead in the evolving electric vehicle landscape.
