China's Solar Exports Surge 80%, EV Shipments Hit Record Amid Energy Transition

Gate News message, April 18 — China's clean energy exports surged in March, with solar cell exports jumping 80%, electric vehicle exports rising 53%, and lithium-ion battery exports climbing 34% year-over-year, driven by global demand for alternatives to fossil fuels amid oil supply disruptions linked to the Iran conflict.

EV and hybrid vehicle shipments reached a record 349,000 units in March, according to the China Passenger Car Association. Analysts noted that some manufacturers may have accelerated first-quarter shipments before China reduced or eliminated export tax rebates on solar and battery products starting in April.

The export surge reflects significant domestic overcapacity in China's clean tech sector. Battery cell capacity additions are reaching approximately 1.3 terawatt-hours, while projected 2026 demand stands at around 600 gigawatt-hours. This imbalance is pressuring battery factory utilization rates below 50% and driving prices lower; lithium iron phosphate (LFP) battery pack costs fell below $80 per kilowatt-hour in early 2025.

The wave of low-priced Chinese exports has triggered protectionist measures globally. The European Union imposed tariffs of up to 35% on Chinese-made EVs in October 2024, following the U.S. 100% tariff on Chinese EVs in 2024. Chinese manufacturers including CATL, the world's largest EV battery maker, and BYD are responding by establishing production facilities in protected markets such as Hungary. China's dominance in battery supply chains—producing over 90% of certain inputs like battery anodes and controlling critical materials such as graphite and rare-earth elements—gives it significant leverage in reshaping global clean tech trade patterns.