Most electric car batteries are made in China, which dominates global production by a wide margin. In 2025, China’s installed battery capacity hit 769.7 GWh, a 40% jump from the previous year, and its combined production of power and energy storage batteries reached 1,755.6 GWh. The United States, South Korea, and Europe are working to catch up, but China currently manufactures the majority of the world’s EV battery cells.
China’s Manufacturing Lead
China’s dominance in EV batteries isn’t just about volume. The country hosts the headquarters and primary factories of the world’s two largest battery makers: CATL and BYD. These companies supply batteries not only for Chinese-made vehicles but for automakers worldwide. In 2025, China exported 305 GWh worth of batteries, up more than 50% from the year before. The country controls much of the supply chain too, from processing the raw minerals (lithium, cobalt, nickel) to assembling finished battery packs.
The United States Is Scaling Up Fast
A wave of new battery factories is being built across the U.S., driven largely by the Inflation Reduction Act. That law ties EV tax credits to where battery components are made: as of 2025, at least 60% of a battery’s component value must come from North American manufacturing to qualify for the $3,750 battery credit. That threshold rises to 80% by 2027 and 100% by 2029, which is pushing automakers to build domestic supply chains quickly.
Ten states account for roughly 80% of all announced EV manufacturing investments: Michigan, Georgia, North Carolina, Tennessee, Indiana, South Carolina, Nevada, Ohio, Kentucky, and California. Some of the largest projects include Ford and SK On’s BlueOval SK joint venture building plants in Kentucky and Tennessee, backed by a $9.6 billion federal loan. Honda and LG Energy Solution are building a battery plant in Jefferson Township, Ohio. GM’s Ultium Cells facility in Warren, Ohio is already operational. Panasonic has a factory in Kansas. Tesla manufactures its own battery cells at its Austin, Texas facility and has a long-running battery operation at its Nevada Gigafactory.
Tesla’s in-house production is worth noting. The company produces its newer 4680 battery cells in Austin using a dry electrode process that’s still ramping up. It also sources cells from partners: LG Energy Solution began mass production of 4680 cells at its Ochang factory in South Korea in late 2024 and plans to produce them at an Arizona plant after 2026. So even a single automaker’s batteries can come from multiple countries.
South Korea’s Outsized Role
South Korea punches well above its weight in battery manufacturing. Three Korean companies, LG Energy Solution, Samsung SDI, and SK On, are among the world’s top battery producers and operate factories across multiple continents. LG has plants in South Korea, Poland, Michigan, and Ohio. Samsung SDI and SK On both manufacture in Hungary, supplying European automakers. SK On also runs factories in Georgia. These Korean firms are the primary source of battery capacity in both the European Union and an increasingly important part of U.S. production.
Europe’s Growing but Uneven Capacity
Europe’s battery manufacturing is expanding, though it hit some turbulence. The continent’s installed capacity grew by about 10% in 2024, but much of that came from Korean-owned factories in Poland and Hungary rather than homegrown producers. Northvolt, the Swedish startup once seen as Europe’s best hope for an independent battery champion, filed for bankruptcy in late 2024 after struggling to scale production. Its Swedish plant was halted, and a planned German facility, which Germany had backed with over 600 million euros in debt, faces significant uncertainty.
New projects are filling the gap. CATL and Stellantis announced a joint venture to build a factory in Spain capable of producing up to 50 GWh of lithium iron phosphate (LFP) batteries, a cheaper chemistry that’s gaining popularity. Hungary has emerged as one of Europe’s most active battery manufacturing hubs, with Samsung and SK both operating there. But Europe remains a net importer of battery cells, and its share of global production is far smaller than its share of EV sales.
Southeast Asia as an Emerging Player
Indonesia and Thailand are positioning themselves as the next wave of battery manufacturing. Indonesia has a natural advantage: it holds some of the world’s largest nickel reserves, a key battery ingredient. The Indonesian government has set an ambitious target of 140 GWh of domestic battery production by 2030, which would require an estimated $15 billion in investment. CATL, LG, and the Korean steel giant POSCO all have battery-related operations in the country. Thailand is attracting investment from Chinese manufacturers like Gotion and has a growing EV assembly sector. Vietnam’s VinES, part of the VinFast automotive group, and Malaysia’s EVE are also building capacity in the region.
Why Geography Matters for Buyers
Where your EV’s battery was made can directly affect what you pay for the car. In the U.S., the federal tax credit of up to $7,500 is split into two parts: $3,750 depends on where critical minerals were sourced, and $3,750 depends on where battery components were manufactured. If your car’s battery was assembled in China, that vehicle likely won’t qualify for the full credit. Automakers are restructuring their supply chains specifically to meet these rules, which is why so many new factories are being announced in the U.S. and allied countries.
Global battery manufacturing capacity is projected to reach roughly 2.4 terawatt-hours by 2030 based on committed investments. That’s a massive expansion from today, and it will be spread more broadly across continents than the current China-heavy map. But for now, if you’re driving an EV, there’s a strong chance the cells in your battery pack were made in China, South Korea, or at one of the new American factories that have come online in the past two years.