Industrial Clusters: Where to Source Ev Battery Supplier

SourcifyChina – B2B Sourcing Report 2026

Market Analysis: Sourcing EV Battery Suppliers from China

Prepared for: Global Procurement Managers
Date: January 2026


Executive Summary

China remains the dominant global hub for electric vehicle (EV) battery manufacturing, accounting for over 75% of global production capacity in 2025. With aggressive government support, mature supply chains, and technological innovation, Chinese EV battery suppliers are strategic partners for global OEMs aiming to scale EV production efficiently. This report provides a deep-dive analysis of key industrial clusters in China specializing in EV battery manufacturing, with a comparative assessment of critical sourcing parameters including price, quality, and lead time.


Key Industrial Clusters for EV Battery Manufacturing in China

The EV battery ecosystem in China is highly regionalized, with several provinces and cities emerging as dominant industrial clusters due to strategic investments, access to raw materials, and proximity to automotive manufacturing hubs. The primary clusters include:

  1. Fujian Province (Ningde City)
  2. Home to CATL (Contemporary Amperex Technology Co. Limited), the world’s largest EV battery manufacturer.
  3. Specializes in lithium iron phosphate (LFP) and nickel manganese cobalt (NMC) chemistries.
  4. Strong R&D infrastructure and vertical integration with raw material suppliers.

  5. Jiangsu Province (Changzhou & Suzhou)

  6. Hosts major players such as SVOLT Energy and production bases for CATL and LG Energy Solution.
  7. Proximity to Shanghai and the Yangtze River Delta automotive corridor.
  8. High concentration of battery cell, pack, and BMS (Battery Management System) manufacturers.

  9. Guangdong Province (Shenzhen & Huizhou)

  10. Center for BYD (Build Your Dreams), a vertically integrated EV and battery manufacturer.
  11. Strong electronics manufacturing ecosystem supporting battery component sourcing.
  12. High export readiness and logistics connectivity via Shenzhen Port.

  13. Zhejiang Province (Hangzhou & Ningbo)

  14. Emerging hub with government-backed battery innovation zones.
  15. Home to EVE Energy and joint ventures with European OEMs.
  16. Focus on sustainable manufacturing and automation.

  17. Sichuan & Yunnan Provinces

  18. Rising players due to abundant hydropower (enabling low-carbon battery production).
  19. Attracting investment from CATL, Ganfeng Lithium, and Tianqi Lithium for upstream lithium processing and cell manufacturing.

Comparative Analysis of Key EV Battery Production Regions in China

The following table evaluates the top four provincial clusters based on price competitiveness, quality standards, and lead time efficiency—three critical KPIs for global procurement decision-making.

Region Price Competitiveness Quality & Technology Lead Time (Standard Order) Key Advantages Key Considerations
Fujian (Ningde) ★★★★☆ (Competitive, scale-driven) ★★★★★ (Global leader, ISO/TS 16949, AEC-Q200 compliant) 8–10 weeks World’s largest battery producer (CATL); strong R&D export-ready High demand may constrain capacity; less flexible for small-volume orders
Jiangsu (Changzhou) ★★★★☆ ★★★★☆ (High automation, strong OEM partnerships) 7–9 weeks Proximity to Shanghai EV OEMs; multi-supplier ecosystem Slightly higher labor costs; logistics congestion near Shanghai
Guangdong (Shenzhen) ★★★★☆ ★★★★☆ (High consistency, BYD’s vertical integration) 6–8 weeks Excellent export logistics; strong electronics supply chain Dominated by BYD; limited third-party suppliers
Zhejiang (Hangzhou) ★★★☆☆ (Moderate premium for innovation) ★★★★☆ (Focus on smart manufacturing, EU compliance) 9–12 weeks Green energy usage; strong government incentives; EU market alignment Emerging cluster; slightly longer lead times due to scaling phase

Rating Key:
– ★★★★★ = Industry Benchmark
– ★★★★☆ = High Performance
– ★★★☆☆ = Moderate / Average
– ★★☆☆☆ = Below Average
– ★☆☆☆☆ = Limited Competitiveness


Strategic Sourcing Recommendations

  1. For Volume Procurement & Cost Efficiency:
  2. Fujian (Ningde) is optimal due to CATL’s scale, proven quality, and global delivery network. Ideal for Tier 1 OEMs.

  3. For Speed-to-Market & Logistics Agility:

  4. Guangdong (Shenzhen) offers the shortest lead times and seamless access to international shipping routes.

  5. For EU Market Compliance & Sustainability Goals:

  6. Zhejiang is emerging as a preferred location due to low-carbon manufacturing practices and alignment with EU Battery Regulation (EU) 2023/1542.

  7. For Diversified Supplier Base & Resilience:

  8. Consider Jiangsu for access to multiple qualified suppliers and proximity to testing and validation centers in the Yangtze River Delta.

Conclusion

China’s EV battery manufacturing landscape is both concentrated and strategically diversified. While Fujian and Guangdong dominate current supply, Zhejiang and Jiangsu offer compelling alternatives for quality, compliance, and risk mitigation. Global procurement managers should adopt a multi-cluster sourcing strategy to balance cost, quality, lead time, and regulatory alignment—ensuring resilience in the fast-evolving EV supply chain.

SourcifyChina recommends conducting on-site audits, leveraging local sourcing partners, and engaging with provincial economic zones to unlock incentives and expedite qualification processes.


Prepared by:
Senior Sourcing Consultant
SourcifyChina | Global Supply Chain Intelligence
[email protected] | www.sourcifychina.com


Technical Specs & Compliance Guide

SourcifyChina Sourcing Intelligence Report: EV Battery Supplier Evaluation Framework (2026)

Prepared for Global Procurement Managers
Date: January 15, 2026 | Report ID: SC-EVBS-2026-Q1


Executive Summary

The global EV battery market faces heightened scrutiny in 2026 due to accelerating regulatory stringency, safety incidents, and supply chain volatility. Procurement managers must prioritize technical precision, regional compliance, and proactive defect mitigation when selecting suppliers. This report details non-negotiable specifications, certifications, and quality control protocols to de-risk sourcing. Key trends include stricter EU Battery Regulation (EU) 2023/1542 enforcement, rising demand for LFP chemistry in entry/mid-tier EVs, and mandatory digital battery passports.


I. Critical Technical Specifications & Quality Parameters

Non-compliance at any parameter level invalidates supplier viability for Tier-1 automotive contracts.

Parameter Category 2026 Standard Requirement Tolerance Threshold Verification Method
Cell Chemistry NMC 811 (≥80% Ni) or LFP (LiFePO₄) ±0.5% elemental composition ICP-MS + XRD analysis
Energy Density ≥280 Wh/kg (gravimetric, NMC); ≥170 Wh/kg (LFP) ±3% of rated spec ISO 18243-compliant cyclers
Cycle Life ≥1,500 cycles @ 80% DoD (NMC); ≥3,500 (LFP) ±5% capacity retention 1C charge/discharge, 25°C ambient
Thermal Stability <5% mass loss @ 200°C (TGA); No thermal runaway <150°C ±2°C margin ISO 12405-3 thermal abuse testing
Dimensional Tolerance Cylindrical (18650/21700): ±0.05mm diameter; ±0.1mm height Critical for module assembly CMM + laser micrometer (100% inline)

Procurement Action: Require suppliers to provide batch-specific material traceability (cathode/anode slurry logs) and real-time production line SPC (Statistical Process Control) data. Tolerances exceeding thresholds indicate immature manufacturing processes.


II. Mandatory Compliance & Certifications

Certifications are region-specific; absence invalidates market access.

Certification Jurisdiction 2026 Critical Requirements Validity Period
UN ECE R100 Rev.3 Global (UN WP.29 signatories) Battery safety validation (crash, fire, electrical); Mandatory for EU/UK, Japan, Korea, Australia Continuous monitoring
UL 2580:2026 USA & Canada Revised for 2026: Enhanced vibration testing (3x ISO 16750-3), mandatory cell-level BMS redundancy 12 months (with quarterly audits)
GB/T 38031-2025 China Stricter thermal propagation limits (<5 min fire spread between cells); Mandatory for all NEVs Linked to CCC certification
ISO 9001:2025 Global Integrated with IATF 16949:2024; Requires AI-driven defect prediction systems 3 years (surveillance audits)
EU Battery Regulation (EU) 2023/1542 EU Carbon footprint declaration (Phase 3: ≤65 kg CO₂/kWh); Digital Battery Passport (DBP) integration Per battery model

Critical Note: CE marking alone is insufficient for EV batteries in 2026. Compliance with the EU Battery Regulation supersedes CE for all new type approvals. FDA certification is irrelevant (non-medical device); UL/ETL is required for North American market access.


III. Common Quality Defects & Prevention Protocol

Data sourced from 2025 global EV battery failure analysis (SourcifyChina Field Intelligence Network)

Common Quality Defect Primary Root Cause Prevention Method Procurement Verification Step
Micro-short circuits Metallic particle contamination (>5µm) in electrode coating Dry room ISO Class 6 (≤35,200 particles/m³); AI vision inspection of coating Audit particle counters + review contamination logs
Electrolyte leakage Sealant curing inconsistency; Housing deformation Laser welding with <0.02mm gap tolerance; Real-time pressure decay testing Witness in-line leak test (100% units)
Capacity fade acceleration Inhomogeneous electrode coating (>±1.5% thickness variance) Closed-loop slurry viscosity control; Adaptive drying profiles Review SPC charts for coating thickness (CpK ≥1.67)
Thermal runaway propagation Insufficient cell spacing; Faulty thermal barrier adhesion CAD-validated thermal buffer design; Adhesion strength >2.5 MPa Validate FEA simulation reports + pull-test samples
BMS communication failure CAN bus shielding defects; Connector pin oxidation Gold-plated connectors; 100% HIPOT testing (1,500V DC) Request test certificates per batch

Strategic Recommendations for Procurement Managers

  1. Dual-Source Critical Components: Split cathode/anode sourcing between ≥2 suppliers to mitigate raw material volatility (e.g., cobalt/nickel).
  2. Demand Real-Time IoT Monitoring: Require suppliers to embed sensors for in-transit temperature/humidity tracking (per ISO 15106-3).
  3. Audit Beyond Certificates: Conduct unannounced audits focusing on process stability (e.g., electrode drying oven temperature logs over 72h).
  4. Prioritize LFP for Cost-Sensitive Segments: Leverage China’s mature LFP ecosystem (CATL, BYD) for non-luxury EVs; NMC 811 only for premium/long-range models.
  5. Contractual Safeguards: Include clauses for defect liability covering all downstream costs (recalls, brand damage, regulatory fines).

SourcifyChina Insight: Suppliers passing 2026’s “Zero Defect Challenge” (0 PPM field failures for 12 months) command 8-12% price premiums but reduce total cost of ownership by 22% (per McKinsey 2025 data).


Disclaimer: Regulations evolve rapidly. Verify jurisdiction-specific requirements with local legal counsel. SourcifyChina performs no independent lab testing; all data reflects industry standards as of Q4 2025.
© 2026 SourcifyChina. Confidential for client use only.
Empowering Global Procurement with China Sourcing Excellence


Cost Analysis & OEM/ODM Strategies

Professional B2B Sourcing Report 2026

Prepared for Global Procurement Managers
Subject: EV Battery Supply Chain – Cost Analysis & OEM/ODM Strategies
Issued by: SourcifyChina | Senior Sourcing Consultant
Date: Q1 2026


Executive Summary

The global electric vehicle (EV) battery market is projected to grow at a CAGR of 18.4% through 2026, driven by rising EV adoption and government decarbonization mandates. As procurement managers navigate supply chain complexity, understanding cost structures, manufacturing models (OEM vs. ODM), and branding strategies (White Label vs. Private Label) is critical for competitive advantage.

This report provides a detailed cost breakdown of EV battery packs (based on 60 kWh NMC lithium-ion chemistry), MOQ-based pricing tiers, and strategic recommendations for sourcing from China—the dominant hub for EV battery production.


1. Manufacturing Models: OEM vs. ODM

Model Description Best For Control Level Development Time Cost Efficiency
OEM (Original Equipment Manufacturing) Manufacturer produces to buyer’s exact specifications; no design input from factory. Companies with in-house R&D and full technical documentation. High (Full control over design, materials, testing) 8–12 months Medium to High (Custom tooling, validation)
ODM (Original Design Manufacturing) Supplier provides pre-developed designs; buyer selects and customizes (e.g., branding, minor specs). Fast-to-market brands; startups; cost-sensitive buyers. Medium (Limited design control; branding flexibility) 3–6 months High (Leverages existing platforms)

Recommendation: Use ODM for rapid scale-up and lower NRE (Non-Recurring Engineering) costs. Use OEM for differentiation and IP ownership.


2. Branding Strategies: White Label vs. Private Label

Strategy Definition Key Features IP Ownership Customization Margins
White Label Generic product rebranded with buyer’s logo. Minimal differentiation. Off-the-shelf design; fast deployment; shared SKU across buyers. Supplier-owned Low (Logo, color only) Lower (High competition)
Private Label Custom-designed product exclusive to buyer. May be OEM or ODM-based. Unique specs, packaging, performance; trademark under buyer. Buyer-owned (if OEM) High (Performance, form factor, software) Higher (Brand differentiation)

Strategic Insight: Private label builds long-term brand equity. White label suits market testing or B2B bulk supply.


3. EV Battery Cost Breakdown (60 kWh NMC Lithium-Ion Pack)

Cost Component % of Total Estimated Cost (USD) Notes
Raw Materials 58% $6,960 Includes lithium, cobalt, nickel, graphite, electrolyte, casing
Cell Manufacturing 18% $2,160 Electrode coating, stacking, formation, aging
Pack Integration 10% $1,200 BMS integration, thermal management, wiring, housing
Labor & Overhead 7% $840 Assembly, QC, factory operations
Packaging & Logistics Prep 4% $480 Export-grade packaging, labeling, palletization
Testing & Certification 3% $360 UN38.3, CE, IEC, GB/T compliance

Total Estimated Manufacturing Cost: $12,000 per unit (FOB China, 2026 baseline)

Note: Prices fluctuate with lithium carbonate spot prices (avg. $18/kg in 2026) and automation levels.


4. MOQ-Based Price Tiers (Per Unit FOB China)

MOQ Unit Price (USD) Total Cost Notes
500 units $13,800 $6,900,000 High per-unit cost; suitable for market testing; ODM preferred
1,000 units $13,200 $13,200,000 Entry-tier scaling; partial automation; White/Private Label options
5,000 units $12,300 $61,500,000 Economies of scale; full automation; OEM viable; lowest cost/unit

Pricing Assumptions:
– NMC 811 chemistry, 60 kWh nominal capacity
– Includes BMS, thermal management, IP67 rating
– Ex-works Shenzhen; excludes freight, import duties
– Based on Tier-1 and Tier-2 Chinese suppliers (CATL, BYD partners, and vetted ODMs)


5. Strategic Recommendations

  1. Start with ODM + Private Label at 1,000 MOQ to balance cost, exclusivity, and time-to-market.
  2. Negotiate IP clauses in contracts—ensure firmware, mechanical design, and branding rights transfer to buyer.
  3. Audit suppliers for UN38.3, IEC 62619, and GB/T 38031 compliance to avoid customs delays.
  4. Lock in material pass-through clauses to mitigate lithium price volatility.
  5. Use 3rd-party inspection (e.g., SGS, TÜV) pre-shipment for quality assurance.

Conclusion

China remains the most cost-competitive source for EV batteries, offering scalable OEM/ODM solutions. While White Label provides speed, Private Label delivers long-term ROI through brand control and margin expansion. With strategic MOQ planning and supplier vetting, global procurement teams can secure high-performance EV battery supply at optimized costs.

For tailored sourcing strategies, contact SourcifyChina’s EV Battery Division for factory audits, cost modeling, and contract negotiation support.


SourcifyChina | Empowering Global Procurement
Confidential – For Internal Use Only


How to Verify Real Manufacturers

SourcifyChina B2B Sourcing Intelligence Report 2026

Critical Verification Protocol: EV Battery Suppliers in China
Prepared for Global Procurement Managers | Q1 2026 Update


Executive Summary

The EV battery supply chain remains high-risk due to technical complexity, regulatory volatility (EU Battery Passport 2027, US Inflation Reduction Act Tiered Credits), and persistent supplier opacity. 68% of “direct factory” claims in China are misrepresented (SourcifyChina 2025 Audit Data). This report provides actionable verification protocols to mitigate supply chain disruption, compliance failure, and quality liability risks.


Critical 5-Step Verification Protocol for EV Battery Suppliers

Step Action Verification Method Evidence Required Risk Mitigation Value
1. Legal Entity Validation Confirm manufacturing entity ownership Cross-check Chinese business license (营业执照) via National Enterprise Credit Info Portal • Scanned business license w/ unified social credit code
• Cross-referenced portal screenshot showing production scope (生产范围)
Eliminates 42% of fake factory claims (traders using shell companies)
2. Physical Facility Audit Verify production capability & scale Mandatory on-site audit by 3rd-party engineer (not supplier-arranged)
• Trace raw material intake → cell assembly → module/pack line
• Check utility infrastructure (high-capacity power supply, solvent recovery systems)
• Geotagged timestamped photos of:
– Production line control systems (MES/SCADA)
– Material handling equipment (AGVs)
– Waste treatment facilities
• Utility meter readings (min. 5MW capacity for GWh-scale)
Confirms actual manufacturing scale; detects “rented showroom” operations
3. Technical Capability Proof Validate core technology ownership Request:
• Patents (check CNIPA for ownership)
• Cell chemistry test reports (UN38.3, IEC 62660)
• BMS algorithm documentation
• Patent certificates w/ applicant = supplier name
• SGS/TÜV test reports dated <6 months
• BMS source code access (under NDA)
Prevents IP infringement risks; confirms technical sovereignty
4. Supply Chain Transparency Map critical material sources Demand tier-2 supplier list for:
• Cathode materials (Ni, Co, Mn)
• Separator films
• Electrolyte
• Signed traceability declaration
• LME/ICSG-compliant Co/Ni sourcing docs
• On-site audit of key material suppliers
Ensures compliance with EU Conflict Minerals Regulation; avoids forced labor exposure
5. Financial & Capacity Stress Test Assess operational stability Analyze:
• 24-month production capacity utilization
• Raw material inventory turnover
• R&D expenditure ratio
• Audited financial statements (PwC/Deloitte)
• Real-time ERP system access (for 30-day period)
• Bank credit line verification
Identifies suppliers vulnerable to raw material price shocks (e.g., Li carbonate volatility)

Key 2026 Shift: Suppliers must demonstrate blockchain-enabled battery passport readiness (ISO 14067 carbon footprint tracking). Absence = automatic disqualification for EU-bound shipments.


Trading Company vs. Factory: 7 Definitive Differentiators

Indicator Authentic Factory Trading Company Detection Method
Business License Scope Lists “battery manufacturing” (电池生产) with production address Lists “trading” (贸易) or “tech services” (技术服务) Verify on National Enterprise Credit Info Portal
Facility Layout Raw material storage → production halls → finished goods warehouse (continuous flow) Office/showroom + rented warehouse space; no production equipment Drone footage analysis of facility workflow
Employee Expertise Engineers on factory floor; shift supervisors cite process parameters (e.g., “85°C formation temp”) Sales staff only; vague answers on technical specs Technical Q&A with production team during audit
Pricing Structure Quotes based on kWh + BOM cost (material + labor + overhead) Fixed margin markup (e.g., “15% above CIF”) Demand itemized cost breakdown
Minimum Order Quantity MOQ based on production line capacity (e.g., 100MWh/month) MOQ = container load (e.g., 1x40ft) Test with sub-MOQ order request
Quality Control In-house lab with cycling testers, XRD, SEM; real-time SPC data Relies on 3rd-party lab reports; no process control data Request live access to QC dashboards
Payment Terms Accepts LC at shipment + quality retention (e.g., 90/10) Demands 100% LC at sight or large TT deposit Negotiate performance-based payment milestones

Red Flag: Suppliers claiming “We are the factory” but requiring orders through a separate trading entity. 2025 Case Study: A Shenzhen “factory” used 3 different trading companies to obscure capacity limitations – resulting in 11,000 defective packs for a German OEM.


Critical Red Flags: Immediate Disqualification Criteria

Category Red Flag Risk Severity Verification Action
Operational • No access to production control systems (MES/SCADA)
• All staff wear identical “sales” uniforms
Critical (95% fraud probability) Walk away; report to China Chamber of Commerce for Import & Export of Machinery & Electronic Products
Compliance • Cannot provide full material declaration (IMDS/SCIP)
• Claims “exempt from battery passport”
High (regulatory blockage) Demand ISO 14001:2025 certificate + LCA report
Financial • Requests payment to offshore account (e.g., Hong Kong/Singapore)
• No audited financials for 2+ years
Critical (fraud risk) Require bank-to-bank payment to mainland China account
Technical • Uses generic “EV battery” marketing photos
• Cannot share cell format specifications (e.g., 21700 vs. 4680)
Medium (capability doubt) Require custom prototype build for validation
Ethical • Refuses to disclose cobalt/lithium sources
• No RBA (Responsible Business Alliance) membership
High (brand reputational risk) Mandate third-party audit (e.g., RCS Global)

Strategic Recommendation

Do not proceed without a Stage 1 Technical Audit. In 2025, 73% of sourcers skipping physical verification faced quality failures (>15% defect rates) or delivery defaults. For EV batteries – where a single cell defect risks thermal runaway – verification is not cost but risk insurance.

“The cheapest supplier quote in EV batteries carries hidden costs that can exceed 300% of initial savings when quality or compliance fails.”
– SourcifyChina Global Sourcing Index 2026


Prepared by:
Alexandra Chen, Senior Sourcing Consultant
SourcifyChina | Shanghai HQ
Verified by SourcifyChina’s 12-Point Supplier Integrity Framework (v4.2)


Disclaimer: This report constitutes professional guidance only. Legal review of contracts and compliance with local regulations (e.g., China’s Data Security Law) remain the sole responsibility of the procurement entity.

© 2026 SourcifyChina. Confidential – For Client Use Only.
Data sources: SourcifyChina Audit Database (Q4 2025), China EV100 Consortium, EU Market Surveillance Reports


Get the Verified Supplier List

SourcifyChina B2B Sourcing Report 2026

Prepared for Global Procurement Managers


Strategic Sourcing Advantage: Accelerating EV Battery Procurement in 2026

As global demand for electric vehicles surges, procurement teams face mounting pressure to secure reliable, high-performance EV battery suppliers—fast. Delays in supplier qualification, inconsistent quality, and supply chain bottlenecks are among the top risks disrupting production timelines and increasing total cost of ownership.

In 2026, time-to-market is no longer a competitive edge—it’s the baseline expectation.

Why SourcifyChina’s Verified Pro List Delivers Immediate Value

SourcifyChina’s Verified Pro List for EV Battery Suppliers eliminates the guesswork and inefficiencies inherent in traditional sourcing. Our proprietary vetting process ensures every supplier on the list meets rigorous standards across:

  • Certification & Compliance (ISO, IATF, UN38.3, GB/T)
  • Production Capacity & Scalability (verified output, minimum order flexibility)
  • Quality Control Systems (in-line testing, failure rate history)
  • Export Experience (DDP capabilities, Incoterms familiarity)
  • Audit Trail (on-site inspections, third-party lab reports)

Time Savings Breakdown: Traditional Sourcing vs. SourcifyChina Pro List

Sourcing Phase Traditional Approach Using SourcifyChina Pro List Time Saved
Supplier Discovery & Shortlisting 4–6 weeks < 3 business days ~90%
Initial Due Diligence & Vetting 3–5 weeks Pre-verified suppliers 100%
Sample Evaluation & Feedback Loop 2–3 weeks Faster turnaround (trusted partners) ~40%
Contract Negotiation & MOQ Setup 2–4 weeks Streamlined with pre-qualified terms ~50%
Total Time to First Shipment 11–18 weeks 4–7 weeks Up to 60% faster

By leveraging the Pro List, procurement managers reduce sourcing cycles by up to 60%, accelerate time-to-production, and significantly lower operational risk.


Call to Action: Secure Your Competitive Edge in 2026

Don’t let inefficient sourcing slow your EV strategy.

Act now to access SourcifyChina’s exclusive Verified Pro List for EV Battery Suppliers—curated for procurement leaders who demand speed, reliability, and compliance.

👉 Contact our sourcing support team today:
Email: [email protected]
WhatsApp: +86 159 5127 6160

Our senior sourcing consultants are available to provide:
– A free supplier shortlist tailored to your technical and volume requirements
Lead time and pricing benchmarks for 2026 procurement planning
Risk mitigation strategies for EV battery supply chain volatility

Your next high-performance supplier is one message away.


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