China’s battery power-grab

What’s happening?

s the transition to electric vehicles (EVs) begins in earnest, a battery “arms race” is underway, and China is in pole position. A range of factors – including tightening emissions rules, earlier bans on internal-combustion models, and consumer incentives – are driving EV sales faster than expected, especially in China and Europe. Morgan Stanley’s auto team now projects 40% of new car sales globally will be EVs by 2030 – meaning annual production of 36 million electric cars within eight years, up from around four million in 2021. China is already easily the world’s biggest market