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Published 17:14 IST, January 31st 2025

From Dominating Auto to Critical Minerals: How China's Resurgence Impact the World, Economic Survey Answers

As a leader in Electric Vehicle (EV) manufacturing, China has disrupted traditional automotive giants in countries like Germany and Japan.

Reported by: Business Desk
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Economic Survey 2025: China now accounts for 60 percent of the world's wind-installed capacity and holds nearly 80 percent of global battery manufacturing, | Image: Republic

China’s rise as a global manufacturing powerhouse is reshaping industries worldwide, particularly in the automotive, mining, and clean energy sectors, as per the latest Economic Survey .

"The effects of the rise of China as a manufacturing colossus are seen in automobile (especially electric vehicles) manufacturing, mining and refining capacity for critical minerals (Copper, Lithium, Nickel, Cobalt, Graphite, etc.) and in clean energy equipment, etc," the survey stated.

As a leader in electric vehicle (EV) manufacturing, China has disrupted traditional automotive giants in countries like Germany and Japan. It also dominates the global distribution of critical minerals such as copper, lithium, nickel, and cobalt, which are essential for EV production and the clean energy transition. This dominance has created dependencies, particularly for nations that rely on China’s resources to drive their own industrial goals.

Rise in China's Share 

The survey pointed out that China now accounts for 60 percent of the world's wind-installed capacity and holds nearly 80 percent of global battery manufacturing, making it pivotal to the energy transition. 

In 2022, China invested US$ 546 billion in clean energy and electric vehicle technologies, far outpacing the combined investments of the US and EU, which stood at US$ 321 billion. As a result, the global manufacturing landscape, particularly in sectors like EVs and clean energy, is poised for a shift, challenging the previous trend of outsourcing to China during the globalization era.

"China's resurgence was foretold in 1904 by British geographer and diplomat Halford Mackinder. Courtesy of these developments, the world's modus operandi of outsourcing manufacturing to China pursued vigorously in the globalization era is poised for a reset," as mentioned in the Survey. 

India’s Electric Vehicle Ambitions

India, in its pursuit of achieving Net Zero emissions by 2070, has made significant progress in promoting the domestic manufacturing of Electric Vehicles. However, this progress faces several challenges. Manufacturing an EV requires six times more minerals than a conventional vehicle

Updated 17:33 IST, January 31st 2025