Exclusive advantages… but not for everyone
2 min
reading time
China’s virtual monopoly
In terms of production, each country intends to use its ‘assets’ to make the difference. China produces 70% of the world’s rare earths, which are very important in car manufacturing, and 90% of heavy rare earths, such as permanent magnets. As for the electric batteries, China’s situation is just as comfortable. CATL, world number one, controls 37.9% of the global market according to CnEVPost. BYD, in second place, is close to 18%. Given that global production of electric batteries has risen by 37.3% in the space of a year, this competitive advantage is not about to disappear, even if a number of giga-factories are planned in Europe and the United States, and recycling could, in part, shake up the market.
The technological advantages of the West
As for the Western countries, they have a number of assets that are also of considerable importance. Even though they are mainly manufactured in Taiwan, new-generation chips are boosting performance in artificial intelligence, which is essentially an American preserve, despite Chinese and European ambitions.
Japanese commercial consistency
As home to the world’s leading car manufacturer, Japan is trying to make the most of its position by pursuing a solid and consistent policy, thanks in particular to the success of hybrid powertrains, an area in which it was a pioneer.