China's electric vehicle industry is poised to dominate the globe, and that has governments in Europe and North America, including Canada, grappling with how to meet ambitious targets for reaching 100 per cent zero-emission vehicle sales through domestic manufacturing…"In the last five years or so, China emerged as an absolute leader in [the EV] space," said Alla Kolesnikova, head of data and analytics at Adamas Intelligence, a research and consulting firm specializing in strategic metals and minerals based in Toronto…As a result, the U.S. has raised tariffs on EVs from China. The Canadian government is now exploring whether to follow suit…The federal government's electric vehicle sales mandate regulations include a national target of 100 per cent zero-emission vehicle sales in Canada by 2035. The U.S. is aiming to have between 35 per cent and 56 per cent of all vehicle sales between 2030 and 2032 be EVs…According to Statistics Canada, zero-emission vehicles accounted for just over 10 per cent of all new motor vehicle registrations in 2023, an increase of 49.4 per cent from 2022…Commenting on the "chicken and egg" situation of building more capacity in Canada, Flavio Volpe, president of the Automotive Parts Manufacturers' Association told CBC's Metro Morning, as they build up capacity, prices should come down. As prices come down, more people will buy EVs and as they do, more charging stations will be built…China's dominance can be attributed to a few factors, including the cheap cost of the vehicles and the fact there's a wide variety to choose from, according to Kolesnikova…In fact, the Seagull, a tiny electric car launched by Chinese automaker BYD (Build Your Dream) last year sells for as low as $10,000 US, or about $13,000 CAD, and it's just as robust as American cars, according to industry experts…That, and the fact that China mines an abundance of the metals and minerals needed for EV batteries, including lithium and cobalt, means they have the supply chain locked down, said Kolesnikova, who points out China is a major exporters of EV batteries, too. "There's vertical integration for the companies there for sourcing battery metals and materials," she said…Considering China is also a major exporter of the materials to manufacture batteries, that's one industry where Canada needs to catch up, according to Sean De Vries, executive director of the non-profit Battery Metals Association of Canada…"We have so many of those critical minerals [needed to make EV batteries] here," he said…"Immediately you won't see too many Chinese brands actively entering the U.S. and Canada," said Ron Zheng, an automotive business analyst with consulting firm Roland Berger, based in Shanghai. "But, they're all taking actions to get themselves prepared to enter the North American market with facilities in South America."…China has made major inroads in Latin America, including manufacturing plants in Brazil. BYD has also confirmed plans to set up shop in Mexico.

European governments may be wary of budget Chinese electric vehicles flooding their markets but they're also fiercely competing for a share of the manufacturing investment and jobs the new competitors bring…While the European Union investigates China's auto subsidies and considers tariffs on imports, national governments across the bloc are dangling their own incentives to attract Chinese automakers looking to build European factories…"Chinese automakers know their cars must be perceived as European if they want to bear interest among European customers," he said. "This means producing in Europe."…The EU tariff decision is expected this week. On one hand, import taxes could help European automakers better compete with their Chinese counterparts, but they may also spur on Chinese automakers which are already investing heavily, and for the long-term, in Europe…Sales of Chinese-brand cars comprised 4% of the European market last year and are forecast to hit 7% by 2028, according to consulting firm AlixPartners…Hungary, which produced around 500,000 vehicles in 2023, secured the first European-factory investment by a Chinese automaker, announced last year by EV giant BYD which is also considering a second European plant in 2025…Spain, Europe's second largest car-making country after Germany, has secured investment from Chery, which will start production in the fourth quarter at a former Nissan facility in Barcelona with a local partner…Chery is expected to benefit from Spain's 3.7 billion-euro programme launched in 2020 to attract electric-vehicle and battery plants…Italy can tap its national automotive fund, worth 6 billion euros between 2025-2030, for incentives for both car buyers and manufacturers. China's Dongfeng is among several other automakers that have held investment discussions with Rome.

China's Gotion High Tech will build Morocco's first EV battery gigafactory for a total cost of 12.8 billion dirhams ($1.3 billion), the Moroccan government said on Thursday…Gotion High Tech is the latest company to invest in EV battery manufacturing in Morocco, which seeks to adapt its growing automotive sector to rising demand for electric vehicles…The Moroccan government and Gotion High Tech signed an investment deal for the gigafactory which will have an initial battery capacity of 20 gigawatts per hour (GWh), the prime minister’s office said in a statement. Gotion High Tech plans to increase the plant's capacity to 100 GWh, with eventual investment that could amount to $6.5 billion, the prime minister's office said…Morocco's geographic location close to Europe, its free trade agreements with key EU and U.S. markets and its existing automotive industry make it attractive to Chinese EV battery makers.

China's premium electric car makers can expect a smooth road ahead of them in 2024 as both consumer demand and product margins improve, giving the assemblers a respite from a bruising discount war which has already resulted in the demise of several competitors…Major players Nio, Xpeng and Li Auto, all felt the impact of the three-month race to the bottom, as prices for 50 models across a range of brands dropping by an average of 10 per cent. They are now forecasting a jump in sales for the three months ending June as government subsidies kick in and as consumers return to the world's largest EV market where sales account for about 60 per cent of the global total…Beijing announced in late April that buyers of EVs which replace their petrol cars will receive a subsidy of 10,000 yuan (US$1,380) and the incentive will be offered until the year-end…Everbright Securities said in a research note in May that the subsidy could boost EV sales by as many as 2 million units in 2024 as the pace of electrification in China's auto industry accelerates…China's subsidies for EV buyers, which were first introduced in 2009, peaked in 2014 at 100,000 yuan, propelling a fourfold increase in sales…China's EV sector, one of the main drivers of the economy, is expected to see sales growth of 20 per cent this year, compared with 37 per cent in 2023, according to a forecast by Fitch Ratings in November.