EV Batteries Demand a New Global Strategy—Not a Rare Earth Playbook

Although power batteries represent a competitive Chinese industry, they are fundamentally different from rare earths. Dong Yang, Chairman of the China Automotive Battery Industry Innovation Alliance, pointed out that rare earths follow a "resource-driven" model, whereas power batteries are "manufacturing-driven." China relies on imports for over 70% of critical resources such as lithium, cobalt, and nickel; its core advantage lies in manufacturing capabilities and industrial chain integration. Unlike rare earths—which have a short industrial chain and limited economic impact—power batteries already constitute a trillion-yuan industry with potential to reach ten trillion yuan in scale, positioning them as a pillar of the national economy. If international geopolitical tensions restrict Chinese battery exports, it would severely disrupt domestic production capacity and technological advancement. Currently, China, Japan, and South Korea dominate the global market, while the U.S. and Europe aim to bolster Japanese and Korean players to reduce dependence on China. Therefore, China must adopt a comprehensive new strategy that balances overseas expansion with safeguards against technology leakage and geopolitical risks—rather than simply replicating its rare earth approach.