According to a report from Spain's "La Vanguardia" website on June 16, based on data from the International Energy Agency, China has now become the world's leading battery producer, holding 85% of the battery manufacturing capacity, 90% of global cathode active material production, and 98% of anode active material production.

The report states that although Europe produces 20% of the world's electric vehicles, it has hardly participated in the global battery supply chain, with its battery capacity accounting for only 7% of the global total. The United States, which produces 10% of the world's cars, holds only 6% of the battery supply chain. Among the world's top ten battery manufacturers, six are Chinese companies. The industry leader is CATL (Contemporary Amperex Technology Co. Limited), with a 34% market share, followed by another Chinese company, BYD, with a 16% market share.

The report highlights that China's rise to become the global leader in battery production is based on several strategic priorities. The first is securing access to strategic raw materials by investing not only in domestic mining but also extensively worldwide, particularly in lithium mining. Refining the materials needed to manufacture batteries is another area where China has invested heavily over the years. The formation of a refined material value chain is attributed to very generous incentive policies.

Time to respond is limited, and the scale of business is enormous. China has recognized the limitations of lithium batteries in meeting this challenge and has been encouraging the development of sodium-ion batteries for many years.

Chen Jian, of Huayu New Energy Technology Co., Ltd., a subsidiary of the global leading electric motorcycle manufacturer Yadea, pointed out, "The tricky part lies in the extraction process of sodium ions. We have developed a method that can reduce production costs by 30% to 40%." In addition to the potential economic impact of this new technology, China has another advantage. Chen Jian said, "Most of the links in the lithium battery production chain can be used for sodium-ion battery production, giving us an edge over Western countries." Sodium-ion batteries not only have lower production costs but are also safer.