Rhodium is a silvery-white metal, that may well be the the rarest and most valuable precious one in the world. Motor manufacturers use rhodium in catalytic converters, to reduce harmful nitrogen oxide emissions from gasoline vehicles. We came across an in depth article by the Rhodium Group, concerning China and the global EV market. This brought us up to speed with the dynamics, and we decided to share the highlights with our visitors.
China’s Market Share In The Global EV Market
The Rhodium Group in New York provides information to help decision-makers reach sound decisions, and navigate global challenges. Their article of June 18, 2025, that we link to below, discloses valuable information about China and the global EV market.
China, the article continues, has a huge domestic electric vehicle market, reflecting the government’s ongoing support for a green economy. Chinese producers also have deep experience of large-scale production of consumer goods.
They also benefit from ‘a raft of state subsidies’ to encourage domestic manufacturing. This advantage is further buoyed up by one of the world’s largest population, enabling economies of scale no other nation comes near. And as a result, China produces 90% of global electric vehicles, and 75% of the world’s batteries.
Why is China Exporting EVs World Wide?
The Rhodium Group’s article goes on to reveal a fascinating detail of which we were previously unaware. The vast majority of China’s electric vehicles and batteries aim at the domestic market, where demand has not kept up with growing manufacturing capacity:
- Ten years of over-optimistic projections have resulted in ‘significant’ EV and battery manufacturing over-capacity.
- This overshoot means China has capacity for 165% of its domestic EV, and 190% of its domestic battery demand.
- In fact, China could produce slightly more electric vehicles and batteries than total global requirements.
The Chinese economy has still not fully recovered from the COVID pandemic. This update puts China and the global EV market in perspective, and explains China’s push to expand into global markets.
More Information
Consolidating the Battery Industry in China
China Tightening Battery Safety Rules Further
