Volkswagen, BMW, and Mercedes-Benz are reshaping their growth strategies as the global auto market enters a low-growth era, with profitability under pressure and EV demand slowing. Instead of chasing volume, the three German automakers are focusing on multi-powertrain platforms, deeper AI integration, and cross-border partnerships.
A quality scandal is spreading around lithium iron phosphate (LFP) batteries made by China Aviation Lithium Battery (CALB). Ride-hailing and taxi versions of GAC Aion's Aion S have suffered cell swelling, electrolyte leakage and insulation failures, an issue estimated to affect more than 210,000 vehicles. CALB was adopted by automakers such as GAC as an alternative to Contemporary Amperex Technology Ltd. (CATL), the world's largest battery maker, as part of a broader industry effort to reduce reliance on a single dominant vendor. The current crisis is now sparking backlash against that diversification strategy.
Sumitomo Chemical plans to begin mass production of a halide-based solid electrolyte in Japan as early as fiscal 2028, positioning the material as a potentially lower-cost option for all-solid-state batteries while seeking performance comparable with leading sulfide-based electrolytes, Nikkei reported.
China is dismantling the tax shelter that helped build the world's largest battery industry, and the move looks less like a one-off revenue measure than the opening of a broad campaign to force consolidation across its clean-energy supply chains — with consequences that reach from Chinese carmakers to global energy-storage buyers.
Gotion High-Tech said its first-half earnings are set to rise sharply, a result that could matter for battery investors and electric-vehicle supply chains worldwide. The Chinese maker cited stronger sales, product upgrades, overseas expansion, and gains from stock investments, while warning the figures are still preliminary and unaudited.
China is increasingly viewing 2026 as the launch year for sodium-ion batteries, as the technology's cost advantages in the energy storage market become more visible. The latest analysis from Bernstein and Morgan Stanley says sodium batteries are no longer just a low-cost alternative to lithium batteries, but are emerging as a complementary technology alongside them.
China's sodium-ion battery sector is drawing intense attention as surging lithium carbonate prices lift lithium battery production costs. But Chinese media say the market is already showing a split between "big-company heat and small-company chill," and that large-scale production could expose new material shortages.
South Korea's hydrogen rail commercialization is entering the final stretch, with Hyundai Rotem, a unit of Hyundai Motor Group, building hydrogen trains equipped with Hyundai Motor's in-house fuel cell system. The first commercial service is expected as early as 2029, but a 2024 shutdown of hydrogen trains in Foshan, China has raised questions about economic viability.
A more than 3x rise in China's lithium carbonate price over the past year has pushed sodium-ion batteries back into the spotlight, with the technology increasingly seen as a potential mainstream alternative to lithium batteries. But US industry players say sodium batteries made in the US still cost more than lithium iron phosphate (LFP) batteries, and subsidies from federal and local governments have yet to create a viable market in the near term.
LG Energy Solution (LGES) is emerging as a key battery supplier for humanoid robots, as demand for high-performance batteries shifts from electric vehicles to physical AI systems with tighter space, weight and runtime requirements.
China's battery industry is widening its lead at home and abroad. Market leader CATL posted record profits while expanding its dominance in overseas electric vehicle (EV) markets. The results underscore the growing imbalance between battery suppliers and automakers.
