The China EV Flywheel And Why Exports Will Keep Rising - CleanTechnica

The article from CleanTechnica highlights a critical but often overlooked reality in the global electric vehicle (EV) market: China is not just the largest car market in the world but also the fastest electrifying one, fundamentally shaping global EV production, costs, and exports. In 2024, China accounted for about 31 million vehicle sales—more than the United States and Europe combined—and plug-in vehicles represented roughly 40% of new car sales, with some months exceeding 50%. China sold approximately 13 million plug-in vehicles that year, more than double the combined sales of the rest of the world. This massive domestic demand sustains continuous high-volume production of batteries, motors, and EVs, driving down costs through economies of scale, learning effects, and supply chain efficiencies. Central to China’s dominance is its control over critical battery manufacturing and raw materials. China produces about 75% of global lithium-ion cell capacity and refines the majority of lithium, cobalt, and graphite used worldwide.