Chinese lithium battery makers are rewriting the rules of global manufacturing. Companies like CATL, BYD, and Gotion have built or announced 68 factories across nearly every continent over the past decade, according to new research from the Rhodium Group. The expansion marks a dramatic reversal - where Western automakers once traded technology for access to China's market, American and European firms now partner with Chinese battery giants to learn state-of-the-art production techniques. But the rapid buildout is sparking local tensions over jobs, environmental impact, and who really benefits from the green energy transition.
The world's battery supply chain is undergoing a seismic shift, and it's happening faster than most governments anticipated. Chinese lithium battery manufacturers have quietly built a global factory network that spans from Hungary to Michigan, challenging everything we thought we knew about manufacturing competitiveness and technology transfer.
According to data compiled by the New York-based think tank Rhodium Group, Chinese battery companies have established 68 production facilities outside their home market over the past decade. The buildout represents more than just factory construction - it signals China's evolution from a low-cost manufacturing hub to a technological powerhouse capable of competing anywhere in the world.
CATL, the world's largest lithium battery maker, leads the charge alongside BYD and Gotion. These companies became so efficient at battery production that they can now relocate operations to high-cost labor markets and still undercut local competitors. The factories are reshaping the transition to clean energy, producing batteries that power everything from electric vehicles to grid storage systems.
But the expansion isn't going as smoothly as Chinese executives might have hoped. Hungary offers a preview of the challenges ahead. The Eastern European nation has become ground zero for Chinese battery investment, with at least four plants under construction including an $8.5 billion facility - possibly the largest overseas factory ever planned by a Chinese battery company.
