The electric vehicle battery supply chain is being reshaped by policy and profitability shifts, according to the IEA's Global EV Outlook 2026. South Korean battery manufacturers, including SK On, posted successive losses and remain reliant on U.S. tax credits, while Chinese leader CATL drew 35% of its revenue from overseas markets.
In Japan, Panasonic held a stable margin of around 14% and Toyota and Samsung are pushing solid-state batteries toward commercialization around 2027-2028. In the United States, the LFP share of battery demand nearly halved under tariffs, with more than 50 GWh of capacity converted to LFP production, mainly for energy storage rather than vehicles.
Globally, nominal lithium-ion capacity passed 4 TWh by the end of 2025, up about 30% year on year, with China holding more than 80%. Sodium-ion remained about 1% of lithium capacity but is planned to reach roughly 7% by 2030 as a cheaper, lithium-light option.
The picture underscores a fragmented but rapidly scaling industry in which trade policy and chemistry bets are redrawing competitive lines.
