"The EU and US markets are simply too small to justify an extra production line to manufacture" market is small for vivo brand.. UE and USA aren't a small market .. Some brands already use 2 cell in smartphone, like realme.
In China, as an increasing number of smartphones are shipping with advanced silicon-carbon batteries boasting capacities beyond 7,000mAh, but the same devices often launch in Europe with significantly smaller batteries. The reason is a transportation regulation, though manufacturers may be able to work around it.