The lithium battery industry chain is accelerating its move overseas.

Securities Daily Reporter Li Yucheng

The lithium battery industry chain is accelerating its “going global.” On March 12, Shanghai Putailai New Energy Technology Group Co., Ltd. (hereinafter referred to as “Putailai”) announced plans to invest $297 million (approximately 2.051 billion RMB) to build a negative electrode material production base in Malaysia. Once operational, it will have an annual production capacity of 50,000 tons of lithium-ion battery negative electrode materials.

Not only Putailai, but this year many lithium battery companies have updated their “going global” progress, showing a pattern of multiple points of expansion.

In terms of batteries, on January 15, CATL’s Indonesia power battery project welcomed its first cell production line equipment. The initial capacity is 6.9 GWh, expected to be completed and put into operation by the end of 2026, with plans to gradually expand to 15 GWh. Recently, the company responded to investor questions on an interactive platform, stating that the overall progress of overseas capacity building is smooth. The German factory achieved profitability in 2025, the Hungarian factory plans to start production in early 2026, and the Spanish joint venture factory and Indonesia supply chain projects are also progressing as planned. On January 20, CATL signed an agreement in Portugal to build a lithium battery factory with an investment of €2.067 billion. On January 27, BYD signed a cooperation agreement with VinFast of Vietnam to jointly build a commercial electric vehicle battery factory in Vietnam. The first phase of the factory will cover 4.4 hectares with a roofed building, with an annual capacity of 3 GWh; the second phase plans to expand to 10 hectares and add passenger car battery lines, increasing total capacity to 6 GWh.

In terms of materials, on January 19, Shenzhen Xinjie Bang Technology Co., Ltd. (hereinafter “Xinjie Bang”) held a groundbreaking ceremony for a new battery electrolyte production base in Kulim High-Tech Park, Kedah, Malaysia, with an expected initial capacity of 30,000 tons. On February 10, Guangzhou Tinci High-tech Materials Co., Ltd. (hereinafter “Tinci Materials”) announced the official start of its electrolyte project in Morocco. The project has a total investment of 2.576 billion Moroccan Dirhams (about $280 million), and upon completion, it is expected to have an annual production capacity of 150,000 tons of electrolytes and core raw materials.

In addition, according to incomplete statistics, companies such as Gotion High-tech, Huizhou EVE Energy, Sunwoda Electronics, and Hive Energy Technology, as well as Xiamen Tungsten New Energy Materials, Minmetals New Energy Materials (Hunan), Beijing Dangsheng Materials, BTR New Materials Group, Ningbo Shanshan, Yunnan Enjie New Materials (Group), and others are also expanding capacity overseas.

From the demand side, sales of new energy vehicles and the output of power batteries continue to grow, with energy storage increasingly becoming a second growth driver, jointly boosting global demand for lithium batteries. The industry outlook is optimistic. According to a research report from CITIC Securities, global lithium battery demand is expected to reach 3,065 GWh by 2026, a year-on-year increase of 34%.

Market proximity is a major consideration for lithium industry chain companies’ “going global” capacity expansion. Yuan Shuai, Deputy Secretary-General of the Zhongguancun Internet of Things Industry Alliance, told Securities Daily that from the market perspective, the regional development of the global new energy vehicle industry is becoming increasingly evident. Regions like Europe and Southeast Asia are seeing continuous growth in new energy vehicle sales, with local markets rapidly increasing demand for power batteries and upstream/downstream materials. This directly drives industry chain companies to deploy capacity near end markets, which can shorten supply chains, reduce transportation costs, better respond to overseas customer customization needs, and improve service efficiency and market competitiveness.

For example, Xinjie Bang stated that the Malaysia electrolyte production base can fill the high-end supply gap for lithium battery electrolytes in the region and meet the needs of global customers for localized supply chains, providing high-quality electrolyte products for local and surrounding markets. Tinci Materials mentioned that the Morocco electrolyte project helps the company further get closer to overseas customers, improve response efficiency, and lay a solid foundation for future global supply chain collaboration and resource optimization.

Cost restructuring and dispersed capacity are also key reasons why lithium industry chain companies are racing to “go global.” Gao Chengyuan, Chairman and CEO of Guangzhou Diaoyuan Marketing Consulting Management Co., Ltd., told Securities Daily that the labor cost advantage in Southeast Asia and the increasing localization requirements in Europe and the US create dual pressures. The deeper motivation comes from supply chain security needs, reducing risks associated with reliance on a single market through capacity dispersion.

Yuan Shuai believes that leading lithium battery companies can seize regional market share by deploying capacity overseas, building a global industry network covering R&D, production, and sales, and avoiding operational risks caused by fluctuations in a single market.