Thread by @scienceisstrat1

Few realize how explosive the growth of EVs has been in China in the last 24 months. EVs now account for 26% of all car sales, up from just 3.5% in Q1 2020.

Below is a short 🧵 on this highly consequential revolution. (1/8)

Cc: @Noahpinion @ramez @JesseJenkins @paulg @erikbryn

Around half a million EVs are sold in China each month, and the numbers are rapidly rising. (2/8)

Overall, EV sales are forecast to hit 6 million in China in 2022, double the 2.99m sold in 2021. The Chinese market is also now nearly 2x the size of the European market and 5x the size of the US market (3/8)

bloomberg.com/news/articles/…

What’s more, the Chinese EV market is dominated by Chinese auto manufactures, with local companies responsible for 73% of all sales. (4/8)

As Chinese manufacturers achieve scale & tech mastery in their giant home market, they will surely turn into export powerhouses w/ significant implications for incumbent leaders in US, Germany, Japan, Italy, S. Korea & France, especially as govs turn up pressure to switch to EVs

What’s more, China is already dominant in the EV battery market. Two of the top five battery manufacturers are Chinese, including the market leader CATL. (6/8)

And China dominates many elements of the downstream EV battery supply chain, from material processing to the construction of cell and battery components. (7/8)

In short, unless major auto manufacturing countries get very serious, very fast, China could become THE dominant player in the next generation automobile industry, with all of the implications that will have for economic power and beyond (8/8).

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https://twitter.com/scienceisstrat1/status/1557866377486245889