Chinese battery factories benefit from changes in the automotive market

Chinese battery manufacturers like CATL and BYD are increasing their market share outside China, particularly at the expense of South Korean competitors. This shift is driven by a decline in North American demand for electric vehicles, while European and Asian markets are expanding, benefiting Chinese producers. In the first nine months of 2026, the combined market share of six major Chinese companies rose to 56.4%, with CATL and BYD accounting for 44.5%. European battery manufacturers struggle to ramp up production, facing investment challenges. Meanwhile, Volkswagen's PowerCo and China's Gotion plan significant investments in battery production in Europe and Morocco, focusing on LFP battery technology, which is becoming more prevalent due to cost considerations. The competitive landscape is impacting South Korean firms, as seen in recent layoffs at SK On Hungary due to changing business conditions.