While the EU has a strong position in the intermediate and assembly phases of making electrolysers, it relies on China for fuel cells and lithium-ion batteries crucial for electric vehicles.

Stereotypes of Chinese manufacturing, import costs, and a less developed EV market are just some of the issues Chinese brands such as BYD, Nio and SAIC's MG will have to overcome to thrive in Europe.

If production of EVs continues to outpace demand, automakers will have to choose between slashing prices and profit margins, or slowing assembly lines.

Once a niche metal used primarily in ceramics and pharmaceuticals, lithium is now one of the world's most in-demand metals given aggressive EV plans from Stellantis, Ford and other automakers.

Layoffs at Rivian come amid falling EV prices kicked off by cuts made recently by Elon Musk-led Tesla and Ford Motor.

Indonesia had previously wooed Tesla for investment in its nickel industry, looking to produce and supply batteries for its EVs.

The factory will be Samsung SDI's second in Malaysia, with the first making cylindrical batteries for electric vehicle customers.