Europe and U.S. Ease ICE Bans, Slowing EV Shift—Boosting Hybrids and Chinese Battery Exports

Recently, the European Union, the United States, the United Kingdom, Canada, and other countries have adjusted their automotive policies, slowing down the pace of electrification. The EU is considering relaxing its 2035 ban on new internal combustion engine (ICE) vehicle sales, while the U.S. is contemplating significantly lowering fuel efficiency standards and eliminating electric vehicle (EV) tax credits. Countries like the UK and Canada are also reevaluating their mandatory EV adoption targets. These policy shifts have temporarily dampened demand for fully electric models among Western automakers but have created new opportunities for hybrid electric vehicles (HEVs). Hybrid technology places higher demands on battery performance, presenting export opportunities for Chinese battery manufacturers such as CATL and FinDreams Battery. Leveraging their technological expertise and economies of scale in hybrid batteries—combined with a “technology export + local manufacturing” strategy—Chinese battery makers are well-positioned to deepen collaborations with global automakers. Amid the long-term global trend toward carbon neutrality, they aim to solidify their technological leadership and gain a strategic advantage through forward-looking investments in next-generation technologies like solid-state and sodium-ion batteries.