CATL and BYD have more than 50% share of world's battery manufacturing capacity. And the trend is upwards. Same reason china EVs are edging out Telsa and EU EVs out in international market, where LFP is becoming more common.
About 40% of Tesla's battery supply comes from those two -- the other 60% from Panasonic and LG. LFP is most widely deployed in China, but that is not why China's "edging out" Tesla -- LFP's market share outside China is not that big. LFP is just a low-end batteries for entry-level, low-range EVs.