As 2024 draws to a close, the power battery industry, having experienced the dual impact of falling raw material lithium carbonate prices and price wars among downstream automakers, is facing a continued escalation of internal competition and an accelerated destocking of production capacity. Faced with this dire situation, Chinese power battery companies are seeking solutions, with accelerating their overseas expansion becoming a key strategy.

Recently, the Battery Film Committee of the China Plastics Processing Industry Association issued an initiative calling on the industry to proactively control and reduce production volumes on both the production and sales sides to avoid price wars and market share competition. However, amid fierce market competition, leading power battery companies are not confined to competing in the domestic market, but are instead turning their attention to the broader overseas market.

CATL and Guoxuan High-tech have both announced plans to build power battery factories overseas. On December 13, Guoxuan High-tech announced that it would invest up to €2.514 billion (approximately RMB 19.147 billion) overseas to build a new energy battery production base. On December 11th, CATL announced it would invest €4.038 billion (approximately RMB 31 billion) in a battery factory in Spain, with an expected annual production capacity of 50GWh. In addition, EVE Energy held a ceremony in Malaysia to inaugurate its factory. The plant, which primarily produces cylindrical batteries for power tools and electric two-wheelers, is expected to begin production in the first quarter of next year.