STMicroelectronics

China EV Supply Chain Faces Battery and AI Shift

China’s EV ecosystem is shifting from pure volume competition to a tougher battle over batteries, semiconductors, and AI compute. GAC Aion has doubled warranty coverage to 8 years/300,000 km for some ride-hailing vehicles using CALB 177Ah LFP batteries, Axera has spun off a new AI inference unit after surpassing RMB 1 billion in revenue, and STMicroelectronics reported Q2 revenue of $3.49 billion while lifting its AI data-center targets above $1 billion for 2026. Together, the moves show how Chinese EVs increasingly depend on after-sales trust, domestic chip capability, and resilient supply chains.