China leads automotive battery and chip race, shifting global car industry

China has become the dominant force in vehicle production and the critical components that power electric cars. It accounts for about 38.6% of global vehicle output and now controls the bulk of battery technology, as well as the majority of the strategic minerals—lithium, cobalt and nickel—required for those batteries. Semiconductor manufacturing capacity, essential for automotive chips, is also concentrated, with over 60% of global capacity located in Taiwan.

The competition in the auto sector has moved from engines to batteries and chips, creating new economic and geopolitical risks. European manufacturers are seeking partnerships with Chinese firms to stay competitive. In Turkey, the automotive industry produces roughly 1.5 million vehicles annually, ranking 11th worldwide, while local businesses such as Gaziantep Akü provide specialized battery services and solutions to meet regional demand.

These developments underline a broader shift toward electric‑vehicle technology, with supply‑chain control and regional expertise becoming decisive factors in the global market.