China’s EV battery industry continued its rapid ascent in the first half of 2025, producing a staggering 697.3 GWh of batteries—marking a 62.2% year-over-year increase. This explosive growth solidifies China’s lead in the global electric vehicle (EV) ecosystem.(CarNewsChina.com, electrive.com, Electrek)
🚗 Massive Traction Battery Output
-
Total traction battery production in H1 2025 reached 299.6 GWh, up 47.3% over H1 2024.(Metal.com)
-
Battery production overall reached 697.3 GWh, up 62.2% YoY.(CarNewsChina.com)
LFP (Lithium Iron Phosphate) chemistry led the charge:
-
LFP output surged 82.9% YoY, hitting 552.4 GWh.
-
Ternary NMC battery output grew 13.5% YoY, reaching 144 GWh.(CarNewsChina.com)
🔋 Installations and Market Share
Installed power batteries (in EVs) totaled 299.7 GWh, up 47.3% YoY.(Metal.com)
-
LFP share reached 81.4%, with 243.9 GWh installed.
-
NMC fell to 18.5% share, at 55.4 GWh.(CarNewsChina.com)
📈 Export Growth
China exported 81.2 GWh of batteries in H1 2025, a 36.5% increase.
-
EV battery exports totaled 81.6 GWh (64.1%).
-
BESS exports grew 232.8%, reaching 45.6 GWh.(CarNewsChina.com, Energy-Storage.News)
🏆 Market Leaders: CATL, BYD & Rising Firms
-
CATL held 43.05% market share with 128.6 GWh installed—though down 3.3 points YoY.
-
BYD followed with 70.4 GWh (23.55%), down 1.55 points. Combined, the two firms controlled 66.6%.(Batteries News)
Other top performers:
-
CALB: 19.46 GWh installed, 7.7% share.
-
Gotion Tech: 15.48 GWh (2.4% share), 100% YoY growth.
-
EVE Energy: 12.21 GWh. Sunwoda and Svolt followed with 9.07 and 8.4 GWh.(electrive.com)
🌟 Why This Growth Matters
1. LFP Chemistry Dominates
LFP now accounts for over 80% of installations in China, favored for safety, cost-efficiency, and availability—especially for mid-range EVs. Its dominance continues to reshape global battery strategy.(CarNewsChina.com)
2. Export Push Strengthens China’s Reach
Battery exports are climbing fast—especially for energy storage systems (BESS). Export growth is underpinning China’s dominance in global battery supply.(Discovery Alert, Energy-Storage.News)
3. Competitive Landscape Diversifies
Despite CATL and BYD retaining over two-thirds of the market, growing players like Gotion, EVE, CALB, and Svolt are expanding quickly—diversifying supply chains and innovation.(electrive.com, Batteries News)
4. Strategic and Economic Implications
China’s scale drives costs down—LFP pack prices reportedly fell to ~$98/kWh in early 2025. That gives Chinese battery firms strong leverage abroad.(Discovery Alert)
🔍 What Lies Ahead
-
Expect further investments in domestic manufacturing, especially to expand LFP and sodium-ion capabilities.
-
Global competitors—from the U.S., Europe, and Japan—may need to innovate chemistry or build integrated supply chains to compete.
-
Export-forward Chinese firms may face backlash or countermeasures as battery exports surge across regions.
📊 Summary Table
| Metric | H1 2025 Value | YoY Growth |
|---|---|---|
| Total Battery Production | 697.3 GWh | +62.2% |
| Traction Battery Installations | 299.6 GWh | +47.3% |
| LFP Output | 552.4 GWh (81.4%) | +82.9% |
| NMC Output | 144 GWh (18.5%) | +13.5% |
| Battery Exports Total | 81.2 GWh | +36.5% |
| CATL Market Share | 43.05% (128.6 GWh installed) | –3.3 percentage pt |
| BYD Market Share | 23.55% (70.4 GWh) | –1.55 percentage pt |
| Combined Share (Top Two) | 66.6% | Slight decline YoY |
✅ Key Takeaways
-
China’s total EV battery output reached 697.3 GWh in H1 2025—a 62.2% increase over last year.
-
LFP chemistry accounted for 81.4% of installations, rising rapidly thanks to cost and performance benefits.
-
Exports grew strongly—over 81 GWh of batteries shipped abroad, led by EV and storage systems.
-
While CATL and BYD remain dominant, emerging firms are steadily gaining ground.
-
This growth highlights China's strategic edge in battery scale, chemistry leadership, and global supply chain influence.