The battery industry is moving toward a division of labour similar to semiconductors, with Western companies focusing on next-generation chemistry design and intellectual property while Asian manufacturers handle mass production, industry officials say. The shift reflects limits on building and running gigafactories, weaker manufacturing competitiveness in Europe and the United States, and U.S. rules requiring the exclusion of certain China-linked supply chains. A wider range of battery chemistries and growing small-lot demand are also accelerating outsourcing.

The electric vehicle battery industry is focusing first on commercialising silicon anode technology rather than solid-state batteries, which are still seen as years from broad rollout. Automakers and battery companies are expanding use of silicon anodes to improve driving range and charging speed. General Motors views wider use of silicon anodes as a key short- to medium-term solution. Battery firms and EV makers cite performance gains, while efforts continue to scale production and improve cost competitiveness.