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.

01 Purpose of Condensation Test

Condensation occurs when water vapor in the ambient air condenses into droplets on the surface of internal battery pack components whose temperature falls below the dew point. If these droplets accumulate on low-voltage circuits, high-voltage circuits, or insulating materials, they can lead to serious safety hazards such as short circuits and insulation failures.

The condensation test primarily focuses on three objectives:

1. Proactive Prevention:

By simulating condensation conditions that the battery system may encounter during actual use, the test confirms whether condensation occurs in real-world scenarios. This helps identify potential condensation risks (such as insufficient sealing, uneven thermal management, or poor moisture resistance of materials) in advance.

2. Condensation Point Localization:
By placing sensors and moisture-indicating materials in key areas inside the battery pack, the test locates the specific points where condensation occurs. This analysis of condensation risks guides design optimizations (e.g., adding waterproofing measures, improving thermal management strategies) based on the test results.

3. Hazard Assessment:
By monitoring the patterns of temperature and humidity changes of critical components in a condensation-prone environment, the test assesses the tolerance, lifespan, and reliability of these components under such conditions.

02 Pre-Test Preparations

1. Test Conditions
– Ambient Temperature: (22 ± 5) °C
– Relative Humidity (RH): 10% to 90%
– Atmospheric Pressure: (86 to 106) kPa

2. Sample Requirements

* Open the battery pack and dry it in an environment of 50°C and relative humidity (RH) of 5%±2% for 48 hours to remove residual moisture inside the pack.
* Then, place it in an ambient temperature environment with a relative humidity (RH) of 85% for 48 hours to absorb moisture, simulating real-world moisture penetration.
* After sealing the battery pack, verify that the gas tightness of the battery system meets the requirements.
* If active dehumidification components are present, they must be operated until the dew point reaches a stable level (equilibrium) with no further downward trend; alternatively, operate the active dehumidification components normally for two weeks.

3. Monitoring Point Setup

Place moisture indicators and sensors in critical areas of the battery pack:

* Structural components
* Low-voltage circuits
* High-voltage circuits
* Battery cells/modules
* Thermal management components
* Battery Management System (BMS)

Place five temperature sensors (attached to the component surface) and five dew point sensors (directly below the corresponding temperature sensors) in each type of area mentioned. Simultaneously, place moisture indicators (e.g., humidity indicator cards that change color to visually reflect humidity changes) to monitor traces of condensation.

03 Test Procedure

1. Constant Damp Heat Test:
* Place the sample in an environment of 50°C and relative humidity (RH) of 93%±3% for 24h / 48h / 72h / 96h (optional).
* Monitor the insulation resistance via the BMS throughout the test. Terminate the test immediately if an insulation warning is triggered.
* After the test, allow the sample to return to ambient temperature. Then, perform checks for insulation withstand voltage, airtightness (leak rate ≤ manufacturer’s requirement), and functionality (e.g., BMS communication).

2. Constant Damp Heat Charge-Discharge Cycle Test:
* Maintain the temperature and humidity conditions specified above.
* Perform charge and discharge cycles according to the project’s required strategy. For example: charge to 80% SOC, then let it rest for 6-8 hours; discharge to 30% SOC, then let it rest for 6-8 hours. Repeat this cycle for 30 / 60 times, or for a total duration of 720h / 1440h (optional).
* Monitor insulation resistance and cell temperature during the process.
* After the cycling, repeat the insulation, airtightness, and functionality checks.

3. Cyclic Damp Heat Test:
* Perform 10 cycles (240 hours total) in an environment ranging from -10°C to 50°C with relative humidity (RH) of 93%±3%, as required by **GB/T 2423.34 Environmental testing – Part 2: Test methods – Test Z/AD: Composite temperature/humidity cyclic test**. This simulates severe temperature and humidity fluctuations.

After the test, let the sample rest at ambient temperature for 1 hour. Then, perform checks for insulation, airtightness, and functionality. Open the pack to inspect the state of the moisture indicators (e.g., water accumulation, color change) and the condition of various components.

Lithium Battery Innovations and Advancements

Introduction to Lithium Batteries

Lithium batteries have become indispensable in modern technology, powering a wide range of applications from portable electronics to electric vehicles and energy storage systems. Their high energy density, lightweight nature, and long cycle life make them the preferred choice over traditional battery technologies. As the demand for cleaner energy solutions and portable power grows, lithium ion batteries continue to evolve with innovative technologies to enhance performance and sustainability. Understanding the fundamental role and advancements in lithium batteries is critical for businesses and consumers aiming to leverage cutting-edge energy solutions.

From the smallest cr2032 lithium 3v coin batteries used in small electronics to large lithium sulphur battery systems designed for electric vehicles, the versatility of lithium-based batteries is remarkable. These batteries not only offer excellent charge retention but also support rapid charging and discharging cycles, making them suitable for diverse use cases. The rapid development in lithium battery technology has also spurred innovation in recycling processes and eco-friendly material usage, contributing to the industry’s sustainable growth.

Company Overview：Suzhou EBAK Battery

苏州艾比柯电子有限公司 (Suzhou EBAK Electronics Co., Ltd.) is a leading manufacturer specializing in advanced lithium-ion battery solutions based in Suzhou, Jiangsu. The company is committed to delivering high-performance, cost-effective lithium batteries tailored for various applications including electric tools, e-bikes, automated guided vehicles (AGVs), electric vehicles (EVs), and energy storage systems. With an emphasis on innovation and quality control,Suzhou EBAK Battery has positioned itself at the forefront of battery technology advancements.

The company’s mission revolves around pushing the boundaries of lithium battery technology while maintaining sustainable practices. By integrating cutting-edge production technology and stringent quality management, Suzhou EBAK Battery ensures that their products meet the highest standards of reliability and safety. Their dedication to research and development enables them to offer customized battery solutions that address specific customer needs and market demands.

For more details about the company’s expertise and values, interested readers can visit the About Us page.

Key Innovations in Lithium Battery Technology

Recent advancements in lithium battery technology have focused on improving energy density, cycle life, safety, and cost. One significant innovation is the development of lithium sulphur battery technology, which promises higher energy capacity at a lower weight compared to traditional lithium-ion batteries. This advancement is particularly promising for electric vehicles and aerospace applications where weight reduction is critical.

Another key breakthrough is the enhancement of lithium ion battery chemistry and the introduction of solid-state electrolytes, which significantly improve battery safety by reducing the risk of leaks and fires. These innovations also contribute to faster charging times and longer battery lifespan. The application of advanced battery management systems (BMS) ensures optimal performance and longevity by monitoring and regulating operational parameters.

In addition, improvements in lithium battery recycling, or li cycle processes, are enabling more sustainable battery lifecycles by recovering valuable materials with minimal environmental impact. The integration of eco-friendly materials without compromising performance further exemplifies the innovation wave in the lithium battery industry.

Competitive Advantages of Suzhou EBAK Battery

Suzhou EBAK Battery sets itself apart through a unique combination of advanced technology, rigorous quality control, and customer-focused customization. Their lithium batteries offer superior performance metrics including high energy density, extended cycle life, and enhanced safety features. These attributes are vital for applications requiring reliable power solutions such as electric tools and energy storage systems.

The company’s dedication to innovation enables it to incorporate the latest advancements, such as lithium sulphur chemistry and solid-state battery components, into their product lineup. This forward-looking approach ensures clients receive state-of-the-art battery solutions suited to evolving market trends. Moreover, Suzhou EBAK Battery’s ability to customize battery packs to specific voltage, capacity, and form factor requirements offers a competitive edge in diverse industry sectors.

Customers looking to explore the product range and detailed specifications are encouraged to visit the Products page.

Sustainable Practices in Lithium Battery Production

Environmental responsibility is a cornerstone of Suzhou EBAK Battery’s manufacturing philosophy. The company actively pursues the use of eco-friendly materials and sustainable production techniques to minimize its environmental footprint. This includes sourcing recyclable components and implementing waste reduction strategies within their production lines.

Advanced li cycle technologies are employed to ensure that end-of-life batteries are efficiently recycled, recovering valuable lithium and other metals while reducing hazardous waste. These initiatives align with global efforts to promote a circular economy in the battery industry and support long-term sustainability goals.

Such commitment to green practices not only supports environmental protection but also ensures compliance with international regulations and customer expectations for ethical sourcing and manufacturing.

Market Trends and Insights in the Lithium Battery Industry

The lithium battery market is experiencing rapid growth driven by increasing adoption in electric vehicles, renewable energy storage, and portable electronics. One dominant trend is the shift towards higher-capacity lithium-ion batteries with improved safety and longer cycle life. Demand for lithium sulphur batteries is expected to accelerate as production costs decrease and applications broaden.

Integration of smart battery management and IoT-enabled monitoring solutions is transforming how batteries are utilized and maintained, enhancing their efficiency and lifespan. Additionally, the lithium battery market continues to benefit from expanding infrastructure for recycling and second-life battery applications.

As businesses look to capitalize on these trends, partnering with innovative manufacturers like Suzhou EBAK Battery ensures access to leading-edge technology and market insights.

Case Studies: Real-World Applications of Our Lithium Batteries

Suzhou EBAK Battery’s lithium batteries have been successfully deployed in numerous real-world applications demonstrating their reliability and performance. For example, their battery packs power a range of electric tools used in industrial settings, offering consistent power output and extended operational time. In the e-bike sector, their lightweight and robust batteries enhance ride duration and safety.

Another notable case is their energy storage solutions integrated into renewable energy systems, where their batteries store solar and wind power for use during peak demand, contributing to grid stability and energy efficiency. The company’s lithium batteries for AGVs have improved automation efficiency in warehouses, providing durable and maintenance-friendly power sources.

The Future of Lithium Batteries

Looking ahead, the lithium battery industry is poised for significant evolution with emerging technologies like solid-state batteries, lithium sulphur systems, and next-generation electrolytes leading the way. These advancements will likely deliver batteries with higher energy densities, enhanced safety profiles, and faster charging capabilities.

Continuous innovation in materials science and manufacturing processes will drive down costs and increase accessibility, making lithium battery technology pivotal in the global transition towards electrification and renewable energy. Companies like Suzhou EBAK Battery are well-positioned to lead this transformation by combining technological expertise with sustainable practices.

Call to Action

For businesses and partners interested in exploring high-quality lithium battery solutions, Suzhou EBAK Battery invites you to learn more about their innovative products and services. Whether you require custom battery packs or industry-leading energy storage systems, their team is ready to provide expert guidance and support. To connect and stay updated on the latest in lithium battery technology, please visit the Contacts page for inquiries and further information.

Discover how partnering with Suzhou EBAK Battery can power your success with cutting-edge lithium battery technology.

For more information about the company’s offerings and capabilities, visit the Home page.

Foxconn’s battery plant entered mass production this year. It supplies power cells for a new Taiwan-designed electric truck. CommonWealth offers this exclusive look into this highly automated production facility, which is a key piece of Foxconn’s master plan for dominating the electric vehicle industry.

On Hon Hai (Foxconn) Tech Day 2025, Chairman Young Liu (劉揚偉) unveiled the tech giant’s new slogan: “Foxconn Inside”. He stresses that batteries are the linchpin for Hon Hai to transition from assembly to the manufacturing of core components.

The large battery of the electric truck on stage held 104 cells. On a full charge, the vehicle can cover 360 kilometers. This is Hon Hai’s newly mass-produced lithium iron phosphate battery, which took three years to develop.

Taiwan’s Most Automated Battery Factory

CommonWealth is invited into the EV battery center, which came online in March of this year. The humans in cleanroom suits are the oddity here; 85% of the assembly line is automated. “You might say this is the most cutting-edge battery plant in Taiwan,” says Chih-yun Chiu (邱志云), senior director at Hon Hai.

Thin silver and black layers are combined to form battery cells at high speed. Around 80,000 have already been produced, enough for 200 electric buses. The plant’s annual output is 0.6GWh, which equates to the batteries inside 10,000 electric cars. Hon Hai has plans to expand capacity to 1.2GWh.

This year’s batch of batteries is for the ET35; batteries for electric buses are going into the final phase of testing. “Foxtron is among our customers,” says Troy Wu (吳易座), Hon Hai’s VP in charge of global battery strategy. He’s speaking of the joint venture between Hon Hai and Yulon on the manufacturing of electric cars and buses.

The Secret to Mass Production: 20-year Industry Veterans Returning from China

Hon Hai has been developing lithium batteries since 2010, but it wasn’t until Liu’s appointment as chairman in 2019 that batteries were officially listed among Hon Hai’s strategic investments. In 2021, Hon Hai put money into battery materials, established the research institute in Toufen, and then constructed the Ho Fa plant to be the center of mass production.

To catch up, Taiwanese experts dispatched to China years ago to oversee battery production have been brought back home. From materials to quality control to manufacturing, every manager on the team has at least 20 years of experience in the battery business.

Wu explains that, while Taiwan used to excel in battery technology, “the market was too small, and talent went over to China.” Now, those prodigies are returning home.

It’s not easy to find new blood. Battery experts are so scarce in southern Taiwan that Ching-fang Hung (洪靜芳), director of recruitment at Hon Hai’s battery center, admits that a significant number of Hon Hai’s ICT engineers have been retrained to become the backbone of the battery management system. In three years, the staff at the Ho Fa center grew from less than 100 to 400.

Taiwanese Supply Chain & Customization Capabilities are Key to Hon Hai’s Victory

Just as it did with computer servers, Hon Hai is building its battery ecosystem around vertical integration.

Currently, over 80% of the materials used in the 230Ah commercial car battery are produced domestically. Suppliers include Long Time Technology, which makes negative electrode materials (its biggest shareholder is Pan-International and its Chairman is Troy Wu); Giga Solar Materials, which makes positive electrode materials and electrolytes; and China Steel Chemical Corp.

Due to its control over materials and R&D, Hon Hai can customize according to client specifications. This is precisely how it secured the ET35 battery orders. A senior manager in the auto industry reveals that two key components in the ET35, the battery and the ADAS L2 self-driving system, are Hon Hai products.

Next Target: Overseas Markets

The Ho Fa plant does everything from mixing the materials and coating the foils to stacking, formation, and assembly into modules and packs. It even houses a testing center where batteries are subjected to shock, vibration, and extreme temperatures to ensure safety.

The real challenge is the international market. Formosa Plastics is also making inroads into EV batteries. Besides supplying Foxtron, Hon Hai must move into overseas markets.

Angus Lee (李泰安), General Manager at Digi-Triumph Technology, thinks India may be Hon Hai’s best chance. The Indian markets for electric two-wheelers and power storage are growing rapidly; what’s more, Hon Hai has a good relationship with the local government and businesses because it assembles iPhones in India. If a battery factory could be built in India, Lee says, “there would be a lot of potential.”

For Hon Hai, the next milestone is going international with its business model and winning orders from the world’s biggest automakers.