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中文At the end of the year, although complete data for December is not yet available, the overall landscape for the entire year is already determined, making it an opportune time to review the development of the power battery industry over the past year.
Looking back at China’s power battery industry in 2025, it presents a contradictory picture: while technological routes have become unprecedentedly unified, with lithium iron phosphate occupying the vast majority of the market share, competition has become more fragmented than ever before. The dominant positions of the “top two” (CATL and BYD) have somewhat weakened, as second-tier companies continue to strengthen and a new wave of emerging players rises. The old order is loosening, and new forces are already emerging.
The following data is sourced from the China Automotive Power Battery Industry Innovation Alliance.
01
Accelerated Expansion of Industrial Scale, with Further Growth in Speed
From January to November 2025, China’s cumulative production of power and other batteries reached 1,468.8 GWh, representing a year-on-year increase of 51.1%. Cumulative sales amounted to 1,412.5 GWh, up 54.7% year-on-year. The cumulative installed capacity stood at 671.5 GWh, reflecting a year-on-year growth of 42.0%.
Specifically for power batteries, the monthly installed capacity in November this year reached 93.5 GWh (an increase of 11.2% month-on-month and 39.2% year-on-year), surpassing 90 GWh for the first time and setting a new historical record. This achievement is particularly noteworthy, as the new energy vehicle market has shown slight signs of cooling, and the year-end “surge” effect has been less pronounced compared to previous years.
From a data perspective, both production and sales growth rates have significantly increased compared to 2024, indicating that the battery industry remains on a high-growth trajectory. The growth rate of installed capacity remains relatively stable, but it is important to note—the growth rate of the vehicle market is declining, reflecting an increase in the average battery capacity per new energy vehicle.
02
The Share of Lithium Iron Phosphate Continues to Rise, While Ternary Battery Share Shrinks Further
From January to November this year, the cumulative installed capacity of domestic lithium iron phosphate batteries reached 545.5 GWh, accounting for 81.2% of the total installed capacity, with a cumulative year-on-year growth of 56.7%. In the previous full year, the cumulative installed capacity of lithium iron phosphate batteries was 409.0 GWh, accounting for 74.6% of the total installed capacity, with a cumulative year-on-year growth of 56.7%.
The data shows that lithium iron phosphate batteries have further expanded their market share in passenger vehicles, commercial vehicles, and other fields, leveraging advantages such as cost and safety. Although ternary batteries still see demand in high-performance vehicle models, their overall market share continues to decline.
03
Energy Storage Batteries Become a New Engine for Exports
Battery exports in 2025 have shown particularly remarkable performance, with overall export growth significantly accelerating compared to the previous year. Among them, batteries for energy storage applications have become the core engine of growth.
Data shows that the growth rate of energy storage battery exports surpasses that of power lithium batteries. From January to November, China’s cumulative export of power batteries reached 169.8 GWh, representing a year-on-year increase of 40.6%. The cumulative export of other batteries amounted to 90.5 GWh, reflecting a year-on-year growth of 51.4%.
In terms of export structure, ternary batteries accounted for 58.3% of total power battery exports, primarily supplying overseas high-end vehicle models. Lithium iron phosphate battery exports benefited from demand in energy storage and commercial vehicles, as overseas markets continued to strengthen their preference for cost-effective solutions.
04
Market Share of the “Top Two” Shrinks as Second-Tier Companies Rise
From January to November 2025, the concentration of the power battery market remained high but experienced minor adjustments. The top 10 companies accounted for 94.2% of the installed capacity, a decrease of 1.6 percentage points compared to 2024.
Among the leading companies, CATL’s installed capacity from January to November reached 287.68 GWh, accounting for 42.92% of the market share—a decline of 2.16 percentage points compared to the full-year data of the previous year. BYD’s installed capacity stood at 148.14 GWh, representing a market share of 22.1%, down 2.89 percentage points from the full-year data of the previous year. The combined market share of the “Top Two” reached 65.02%, a decrease of nearly 5 percentage points from 2024 and a significant contraction from the high of over 70% in 2023.
In contrast, second-tier companies such as Gotion High-tech (installed capacity of 37.74 GWh from January to November, accounting for 5.63% of the market share—an increase of 1.2 percentage points compared to the previous year) and REPT BATTERO (installed capacity of 2.98 GWh in November, with market share rising by 0.69 percentage points) demonstrated impressive growth rates. The industry competition is evolving toward a pattern of “leading players guiding the market while second-tier companies break through.”
05
Surge in New Energy Commercial Vehicle Demand Emerges as a Major Growth Driver for Installed Capacity
From January to November 2025, the demand for power batteries in new energy commercial vehicles increased significantly. At the corporate level, companies such as EVE Energy (with 16.43 GWh installed in commercial vehicles), Gotion High-tech (10.18 GWh), and REPT BATTERO (7.49 GWh) all benefited from the accelerated electrification of heavy-duty electric trucks, buses, and other applications. In terms of vehicle structure, the installed capacity of pure electric trucks and specialized vehicles led the growth. In 2025, commercial vehicles have become a key force driving the growth in installed capacity, breaking the previously passenger-vehicle-dominated demand landscape. Although passenger vehicles still accounted for over 70% of the installed capacity from January to November, the share of commercial vehicles increased by 3.2 percentage points compared to 2024.
06
Demand for Key Materials Soars in Line with Production Growth
The demand for key materials in power batteries expanded alongside the growth of the industry’s scale.
From January to November 2025, China’s production of ternary materials for power and other batteries reached 619,000 tons, while lithium iron phosphate materials amounted to 2.902 million tons. Anode materials reached 2.054 million tons, and separator materials totaled 29.34 billion square meters. Electrolyte for ternary batteries reached 275,000 tons, and electrolyte for lithium iron phosphate batteries amounted to 1.741 million tons.
In contrast, in 2024, China’s production of ternary materials for power and other batteries was 490,000 tons, while lithium iron phosphate materials amounted to 1.934 million tons. Anode materials reached 1.27 million tons, and separator materials totaled 16.42 billion square meters. Electrolyte for ternary batteries reached 225,000 tons, and electrolyte for lithium iron phosphate batteries amounted to 1.061 million tons
07
Battery Capacity per Vehicle Rises Steadily, Technology Aligns with Market Needs
From January to November 2025, the average battery capacity per new energy vehicle continued its upward trend. In the pure electric passenger vehicle sector, models equipped with batteries from companies such as CATL and BYD generally exceeded 50 kWh, with some high-end models surpassing 70 kWh. This represents an increase of approximately 8% compared to the average capacity in 2024 and about 15% compared to 2023.
Meanwhile, through technological optimizations such as cathode doping and electrolyte improvements, lithium iron phosphate batteries have continued to break through in terms of energy density and low-temperature performance, adapting to a wide range of applications from A0-class passenger vehicles to heavy-duty trucks. This not only meets automakers’ cost-reduction needs but also aligns with consumers’ expectations for longer driving ranges.
08
Diversification of Technology Pathways, Emerging Battery Types Begin to Develop
In 2025, although “other types” of batteries (such as sodium-ion and solid-state batteries) still accounted for a small proportion of total production and sales (approximately 0.1–0.3%), their month-on-month growth rates often exceeded 100%, indicating that new technology pathways are undergoing small-scale industrial trials.
09
Overseas Markets Become a Key Growth Driver
Overseas markets expanded rapidly. The efforts of Chinese battery companies to establish factories abroad (such as CATL’s European base and Gotion High-tech’s U.S. plant) have begun to yield results. From January to November, power battery exports accounted for 18.4% of total sales, an increase of 1.2 percentage points compared to 2024 and 4.5 percentage points compared to 2023. Overseas markets have become a significant growth driver. Compared to the 2023–2024 phase dominated by product exports, 2025 marks a new stage of globalization characterized by “localized production and technology exports.”
10
Policy Drives Demand and Standardizes Production
From January to November 2025, the development of the industry benefited both from domestic policy support, such as promotion policies for new energy vehicles and subsidies for the electrification of commercial vehicles, and from breakthroughs in global expansion. On the policy front, government support for areas such as commercial vehicle electrification and energy storage power stations has provided new growth opportunities for battery demand. Carbon footprint management and addressing green trade barriers have become key focuses, driving companies to optimize their production processes.
