As Chinese battery giants expand abroad, their factories are raising questions about who benefits and what the environmental and social costs will be. In Hungary, for example, at least four plants are being built, with the largest worth an estimated $8.5 billion. While some Hungarians are excited about job opportunities, others are skeptical that local workers will be hired or that the factories will prioritize the environment.
The shift is significant because it challenges traditional narratives of Chinese manufacturing as being based on cheap labor and pollution. Instead, these companies have become efficient and technologically advanced, making them competitive even when building in non-traditional locations.
However, there are also concerns about the environmental impact. In Hungary, critics say that the factories will inherit from Japanese and Korean battery companies the problems of groundwater pollution during manufacturing. The Chinese companies' investments in drought-prone regions have also been criticized for being a major part of heated media debates over resource availability.
Locals may feel disconnected from these batteries and their green energy benefits because they are primarily destined for Western European car markets, where consumers already buy electric vehicles. In contrast, the average Hungarian has not yet made that transition in his or her car.
Not all international deals announced by Chinese battery makers have panned out, however. Five of the 68 factory investments found were paused or canceled after construction had begun. That is partly because consumer adoption of EVs in these markets has been a slower process than in China.
In addition to shifting their focus from manufacturing electric vehicles to energy storage, some Chinese battery companies are deploying this backup plan. Ford and Envision AESC are just two examples that have recently announced plans to transition their factories in the US.
Finally, for partner countries and governments working with these firms to bring factories into their territories, there is an opportunity for market access and subsidies in exchange for technology transfer. As Brian Engle of NAATBatt International explained, this is a long-term strategy for economic growth that will not reverse.
The shift is significant because it challenges traditional narratives of Chinese manufacturing as being based on cheap labor and pollution. Instead, these companies have become efficient and technologically advanced, making them competitive even when building in non-traditional locations.
However, there are also concerns about the environmental impact. In Hungary, critics say that the factories will inherit from Japanese and Korean battery companies the problems of groundwater pollution during manufacturing. The Chinese companies' investments in drought-prone regions have also been criticized for being a major part of heated media debates over resource availability.
Locals may feel disconnected from these batteries and their green energy benefits because they are primarily destined for Western European car markets, where consumers already buy electric vehicles. In contrast, the average Hungarian has not yet made that transition in his or her car.
Not all international deals announced by Chinese battery makers have panned out, however. Five of the 68 factory investments found were paused or canceled after construction had begun. That is partly because consumer adoption of EVs in these markets has been a slower process than in China.
In addition to shifting their focus from manufacturing electric vehicles to energy storage, some Chinese battery companies are deploying this backup plan. Ford and Envision AESC are just two examples that have recently announced plans to transition their factories in the US.
Finally, for partner countries and governments working with these firms to bring factories into their territories, there is an opportunity for market access and subsidies in exchange for technology transfer. As Brian Engle of NAATBatt International explained, this is a long-term strategy for economic growth that will not reverse.