Report

Industrial Policy for the Battery Age

Lessons from China, Indonesia, and Morocco

This report examines how China, Indonesia, and Morocco use industrial policy to develop electric vehicle (EV) battery value chains. It analyzes strategies across mining, processing, battery manufacturing, and EV production, highlighting economic opportunities, trade impacts, investment trends, sustainability concerns, and implications for global trade governance and green industrial policy.

By Aaron Cosbey, William Davis, Poorva Karkare, Bertram Lang, Poppy S. Winanti on July 30, 2026

Key Messages

  • China, Indonesia, and Morocco use different industrial policy models to strengthen their positions in EV battery value chains through subsidies, local content rules, investment incentives, infrastructure, and value chain integration.

  • While battery industrial policies can support economic growth, EV adoption, and green transitions, they also create challenges, including overcapacity, trade tensions, environmental damage, labour concerns, and policy coordination gaps.

Report details

Topic
Trade
Region
China
Indonesia
Morocco
Impact area
Sustainable Economies
Publisher
IISD
Copyright
IISD, 2026