It’s too soon to declare victory in the war for the next generation of battery technology. However, it is currently hard to imagine China losing its edge in both mass production and innovation. Opting out of those products will make electric cars more expensive and less sophisticated.
Researchers at the Center for Strategic and International Studies calculated that Chinese government support for the battery and EV sector totaled $230 billion from 2009 to 2023. 5 China dominates the manufacturing of every component of battery cells as well as the upstream supply chain (see figure 2a).
However, China’s ambitions go beyond control over raw materials. By fostering a robust battery recycling industry, China is working to reduce its reliance on newly mined minerals while simultaneously lowering the environmental impact of EV battery production.
China's taking the lead in EV battery recycling. Photo: Asia Times Files / X Screengrab / AFP As the electric vehicle (EV) market surges worldwide, battery recycling and circular economy initiatives have become essential to the global green transition.
China’s innovation and investment in battery recycling represent both a pragmatic response to resource scarcity and a forward-looking exploration of circular economy potential. As the global green transition gathers pace, the ability to close the loop on critical resources like EV batteries will become an increasingly valuable asset.
China’s role in battery recycling is likely to shape the future of green tech and thus the dynamics of international economic power in the years to come.