China’s lithium battery industry detrimental for its economy

China’s investment in the Lithium battery industry is seemingly coming back to haunt the country’s smaller battery manufacturers who have invested billions to take advantage of the growing demands as well as the subsidies provided by the government.

China’s battery manufacturers are expected to produce 4,800 gigawatt-hours (GWh) of batteries by 2025 while the demand for such batteries is shrinking by the hour. This is not only quadruple of the demand sought by the country’s EV makers, but is also ultimately going to lead to the closure of battery manufacturers that operate in smaller sizes.