East Asia was always the center of gravity in the manufacturing of lithium-ion batteries, but within East Asia the center of gravity gradually slid towards China in the early 2000’s. Today, Chinese companies hold key positions in the global lithium supply chain, both upstream and downstream, representing roughly 80% of battery cell manufacturing as of 2021.1 The spread of consumer electronics such as cellphones and laptops boosted adoption of lithium-ion batteries in the 2000’s, and now in the 2020’s a global shift to electric vehicles (EVs) is putting wind into the sails of lithium-ion batteries. Understanding Chinese lithium companies is therefore crucial to understanding what’s powering the expected upcoming surge in EV adoption. The Center of Gravity Shifted Towards China

Multiple Nobel Prize-winning breakthroughs led to the commercialization of lithium batteries, notably by Stanley Whittingham in the 1970’s and John Goodenough in 1980. While these attempts were not entirely successful, they laid the ground for Dr. Akira Yoshino’s crucial breakthrough in 1985, which made lithium-ion batteries safer and commercially viable. From there on, Japan had a leg-up in the early race to sell lithium batteries and the rise of South Korea made East Asia the center of the industry.

By 2015, China surpassed both South Korea and Japan to become the top exporter of lithium-ion batteries. Behind this ascent was a combination of policy efforts and bold entrepreneurship. Two relatively young companies, BYD and Contemporary Amperex Technology Company Limited (CATL), became trailblazers and now make up almost 70% of battery capacity in China.2