Elaine Dezenski, Senior Director and Head of the Center on Economic and Financial Power at the Foundation for Defense of Democracies (FDD), has raised concerns about China's non-market strategies that have allowed it to dominate the battery supply chain. These remarks were made during a podcast.
"China practices non-market strategies," said Dezenski, CEFP Senior Director and Head. "Practices that undermine market dynamics in ways that make it very difficult for Western competitors to operate. That market is completely cornered by China. We have to continue to repeat the message over and over again."
According to the Foundation for Defense of Democracies, these practices pose a systemic threat to economic security in free-market nations. Dezenski and Josh Birnbaum outline how China employs non-market practices such as aggressive subsidies, product dumping, price manipulation, intellectual property theft, and forced technology transfer to influence global battery markets. They argue that these coordinated strategies have enabled Beijing to dominate critical supply chains, undermine fair competition, and limit access for Western firms.
The International Energy Agency (IEA) reported that as of 2023, China held nearly 85% of global battery cell production capacity and controlled substantial portions of cathode and anode material output. This underscores its vertical integration in the battery supply chain. Global investment in electric vehicle (EV) batteries reached approximately USD 115 billion in 2023, contributing to total battery and storage sector investments around USD 150 billion, with China leading the market share. By mid-2025, China's traction battery capacity had grown by 47% year-on-year to about 299.6 GWh, led by companies such as Contemporary Amperex Technology Co., Limited (CATL).
According to the IEA, in 2023, China accounted for nearly 84% of global lithium-ion battery production. This matched worldwide battery demand and vastly outpaced other regions. That year, China's installed production capacity significantly exceeded global usage of cells, using less than 40% of capacity. Cathode and anode installations were four to nine times greater than EV cell demand. Furthermore, China controlled between 70%–85% of key component output—for instance, refining over 79% of natural graphite and commanding more than two-thirds of cobalt and lithium processing capacity.
Elaine K. Dezenski is noted for her leadership role at FDD's CEFP where she leads research on economic statecraft, supply chain security, sanctions, and geopolitical risk. She has previously served in senior roles at the World Economic Forum, INTERPOL, and the U.S. Department of Homeland Security. Additionally, she founded LumiRisk LLC and serves as a senior advisor with expertise in China affairs and illicit finance.
