China's solar exports jump 80%, EVs hit record

China said on April 18 that March exports of lithium ion batteries rose 34% while electric vehicle exports rose 53% and solar cell exports rose 80% from a year earlier as buyers sought alternatives to fossil fuels during oil supply disruption linked to the Iran conflict.

EV and hybrid shipments reached a record 349,000 units in March, according to the China Passenger Car Association.

Analysts said some firms may also have brought forward first quarter shipments before China cut or removed export tax rebates on solar and battery products from April.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

China’s clean tech export boom comes from too much capacity at home

Exports are rising because factories in China can make far more than the market can absorb, not because overseas demand suddenly jumped.
Battery cell capacity additions reach about 1.3 terawatt-hours, while projected 2026 demand is about 600 gigawatt-hours 1.
That buildup could push battery factory use below 50% and drag prices lower. Pack-level lithium iron phosphate (LFP) battery costs fell below US$80 per kilowatt-hour in early 2025, said Mordor Intelligence, a market research firm 1.
Much of that supply is moving beyond Western markets. The U.S. set 100% tariffs on Chinese electric vehicles in 2024, while the European Union (EU) added duties later that year 2.

The export wave is reshaping global trade

Low-priced shipments helped drive a tougher response in Europe, where the European Union placed tariffs of up to 35% on Chinese-made EVs in October 2024 3.
Chinese companies are also building inside protected markets. Contemporary Amperex Technology Co. Limited (CATL), the world’s largest electric vehicle battery maker, is investing in production in Hungary 3. BYD, a Chinese electric vehicle and battery company, is doing the same 3.
The strain reaches beyond finished goods into the wider battery and clean tech supply chain.
China makes over 90% of some inputs such as battery anodes. It has also tested export curbs on graphite and rare-earth elements, giving it leverage over global rivals 2.