China produces as many electric vehicles as the rest of the world combined, the result of aggressive government policies to boost EV demand and manufacturing.
The push to electrify is part of China’s broader effort to control air pollution in its cities, where car ownership has risen dramatically. In a concerted effort, the government has invested heavily in the development of EV technologies, established sales quotas, and offered incentives to make EVs affordable. Today, China has also become the world’s dominant maker of EV batteries, the most valuable component in any electric car, and its global automotive ambitions have grown.
PVMI Director John Paul MacDuffie takes a closer look at the ambitious environmental and industrial policies that have enabled the growth of China’s electric vehicle industry. He also discusses how China’s EV manufacturing scale, rooted in environmental policies, might upend traditional hierarchies in the global automotive industry.