Chinese EV makers completed $85 billion in overseas factories over past decade

Chinese electric-vehicle and battery manufacturers completed $85 billion in overseas factory projects over the past decade, according to data compiled by the New York-based research firm Rhodium Group. Announced foreign direct investment in the sector averaged $33 billion a year in 2022 and 2023 before falling sharply after the United States and the European Union raised tariffs.

Completed overseas spending remains a small fraction of the value of Chinese EV and battery exports during the same period.

Investment patterns Friendlier markets in Africa and Asia replaced Europe as the main destinations for new Chinese EV-related projects. Sixty percent of announced U.S. investments in the sector have been canceled. BYD’s plant in Thailand is operating, while its facilities in Hungary and Brazil face delays and its project in Turkey has been suspended indefinitely.

Export reliance Chinese companies continue to rely primarily on exports to reach foreign buyers. The average price of an electric vehicle in the United States is more than double the price in China. Canada and the European Union eased some import tariffs after determining that Chinese firms dominate global EV and battery output.

Pressure is increasing on U.S. policy as Chinese vehicles enter neighboring markets through Mexico and Canada.