At the entrance to the BYD factory, there is an inscription: “Developing new energy vehicles is the only way for China to go from being a great automobile country to an automobile power. Xi Jinping.” This quote highlights China’s ambition to become a leading force in the global automotive industry. The factory is a testament to this ambition, with an assembly line capable of producing 3,000 vehicles a day.
BYD, the Chinese plug-in giant, is challenging Tesla for the title of world’s leading producer of electric cars, surpassing it in the production of plug-in hybrids. The company does not outsource its research and development, instead carrying out 100% of its key component development, including electric motors and batteries.
China is the world’s largest producer of cars, with over 30 million vehicles produced in 2023, more than double the number produced in the United States. The country is also the leading producer of wind and solar energy, making it a dominant force in the global green transformation. However, this dominance has raised concerns in Europe, where there is a need to avoid excessive dependence on Chinese technology and materials.
China’s control over key materials, such as rare earth elements, lithium, and graphite, is a major concern for European countries. The country’s giant companies, such as Ganfeng Lithium and Tianqi Lithium, are making large profits from the extraction of these materials. Europe is in need of solid-state batteries, which will allow it to produce cheaper vehicles with greater autonomy, reducing its dependence on Chinese technology and materials.
The European Union has responded to this threat with a plan to increase its economic security, which would give it more bargaining power in negotiations with China. However, this strategy has raised concerns among some economists, who believe that it is protectionist and may hurt European industries.
The Chinese government has responded to these concerns by accusing the EU of using unfair means of competition and has withdrawn from the international agreement on the subject of foreign investment. The trade war between the EU and China has intensified, with both sides imposing tariffs and conducting anti-dumping investigations.
In the midst of this uncertainty, several Spanish companies, such as Basquevolt, are seeking to develop their own solid-state batteries to reduce their dependence on Chinese technology and materials. Meanwhile, Chinese companies, such as BYD and CATL, are investing heavily in the automotive sector, with some of them planning to set up factories in Europe.
In the end, the path ahead is uncertain, with both sides seeking to gain an advantage in the global market. However, regardless of the outcome, it is clear that the automotive sector is undergoing a transformation, and countries will need to adapt to the new realities of the electric era.
