In recent times, batteries have become as important as once oil is. From mining to refining, battery production to electric vehicles (EVs), Beijing has built a supply chain that no other country can match. With decades of planning, China now dominates the global lithium market.
China is set to become the world’s largest lithium miner by 2026, overtaking Australia. While Australia has larger reserves, China has secured its supply by investing heavily in Latin America’s Lithium Triangle and Africa’s mineral-rich regions. Domestic mining alone is not enough. The biggest profits come from refining, and China leads here as well. Around 70% of the world’s battery-grade lithium is refined in China.
The Chinese battery industry is also the world’s largest. In 2024, China produced 1,170 GWh of lithium-ion batteries, accounting for three-quarters of global output. A strong domestic EV market, producing 11 million cars annually, helps factories achieve scale, reduce costs, and improve efficiency. Government subsidies, low-interest loans, and large industrial parks make the sector even stronger. China is not just competing globally, it is setting the rules for the battery and EV industry.
China’s success comes from several factors, which includes full control over the supply chain from mines to EVs, long-term government policy support, massive domestic scale, and investment in new technologies like LFP (Lithium Iron Phosphate) batteries, which are cheap, safe, and less dependent on cobalt and nickel.
According to reports, China is expanding mining operations in Argentina and Chile, increasing its share in Africa, and investing in battery recycling. Companies like CATL and BYD are promoting Chinese battery technology globally while keeping advanced innovations within controlled markets.
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Shivam Verma is a journalist with over three years of experience in digital newsrooms. He currently works at NewsX, having previously worked for Firstpost and DNA India. A postgraduate diploma holder in Integrated Journalism from the Asian College of Journalism, Chennai, Shivam focuses on international affairs, diplomacy, defence, and politics. Beyond the newsroom, he is passionate about football—both playing and watching—and enjoys travelling to explore new places and cuisines.
