U.S. carmaker Tesla has become the latest international company to double down on investment in China’s new-energy sector.
The company on Thursday broke ground on a mega factory in Shanghai to manufacture its energy-storage batteries. This move demonstrates a strong vote of confidence in the world’s major new-energy producing country despite the “decoupling” and “derisking” rhetoric hyped by some U.S. politicians.
In Shanghai, the electric car maker has already operated a gigafactory, which delivered 947,000 vehicles in 2023, an increase of 33 percent from the previous year.
Experts said China’s fast-growing green technologies and its thriving new-energy market have heightened the country’s magnetism for foreign investors, particularly auto firms keen on turbocharging the electrification trend.
Last month, BMW announced an additional investment of 20 billion yuan (about 2.8 billion U.S. dollars) in its production base in Shenyang to facilitate the production of its Neue Klasse EV-only lineup.