The Global Investments Powering China’s EV Push

The zero-emission vehicle (ZEV) supply chain represents the first major test case of Chinese manufacturers’ ambitions to globalize through FDI. Drawing on Rhodium Group’s China Cross-Border Monitor (CBM) and Global Clean Investment Monitor (GCIM) datasets, we compare the trajectory of Chinese investment in the ZEV supply chain at home and abroad.

Overseas investment now leads for the first time. In 2024, Chinese ZEV firms invested more abroad than at home, a historic shift after years of directing around 80% of investment to the domestic market. Overseas projects have generally mirrored domestic patterns but typically lagged and trailed in scale.

Batteries dominate, but ZEV assembly is catching up abroad. Chinese ZEV investment has focused on batteries, both abroad (74%) and at home (69%), but overseas ZEV assembly is growing rapidly.

Even so, production capacity is still anchored at home. Despite growing overseas investment, China’s production capacity remains mostly domestic. Only around 15% of announced battery cell and ZEV assembly capacity is overseas.

Chinese ZEV investments also face higher costs, delays, and risks abroad. Overseas cancellation rates are twice as high and only 25% of investments are completed, compared to 45% domestically.
Chinese firms have adopted different FDI strategies, depending on their market segment. Battery makers are far more internationalized, leading early overseas expansion, while ZEV makers remain focused primarily on the domestic market.