The EV battery supply chain is undergoing a seismic shift in 2025, with diversification efforts countering China’s dominance while prices plummet. China holds 97% of anode and 90% of cathode capacity, yet July’s export controls on battery technology mirroring rare earth restrictions—spurred global onshoring. The restrictions specifically cover 3 core lithium iron phosphate (LFP) technologies and 5 lithium extraction and processing methods—technologies where China commands over 95% of global production capacity. Example: 2025 commissioning of non-China facilities, like CATL’s €4.1 billion Spain JV with Stellantis for LFP cells, which slashes U.S. production costs by 20% compared to Chinese imports.
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