Unrivaled Market Share and Production Capacity
China has firmly established itself as the undisputed leader in the global battery market, particularly within the electric vehicle (EV) sector. Recent data from January to October 2025 indicates that six major Chinese battery manufacturers collectively controlled an impressive 68.9% of all EV battery installations worldwide. This dominance is further highlighted by China's overall lithium-ion battery production, which accounted for 76% of the global market in 2024.
Key players like Contemporary Amperex Technology Co., Limited (CATL) and BYD lead this charge. CATL maintained its top position with a 38.1% global market share from January to October 2025, slightly up from 37.6% a year prior. BYD secured the second spot, holding a 16.9% market share during the same period. In 2022, China commanded 77% of the global battery manufacturing capacity, a figure projected to remain substantial at 69% by 2027.
Strategic Investments Fuel Growth and Global Expansion
The sustained growth of China's battery industry is underpinned by massive investments in manufacturing infrastructure and clean energy projects. Since 2019, nearly $300 billion has been announced for new lithium-ion battery gigafactories globally, with China contributing a staggering 74% of this investment in the last year alone. CATL, for instance, committed $12.6 billion to new battery capacity investments last year and is on track to achieve an annual production capacity of 1042.6 GWh by 2031.
Chinese companies are also expanding their footprint internationally. Since early 2023, they have pledged over $180 billion for clean energy projects outside China. Notable examples include a joint venture between CATL and Stellantis for a €4 billion battery plant in Spain, and CATL's investment of over €7 billion in a 100 GWh battery factory in Hungary. These strategic moves aim to meet rising global demand and establish integrated supply chains across continents.
Pioneering Innovation and Supply Chain Control
China's leadership extends beyond manufacturing volume to technological innovation. The country is at the forefront of developing advanced battery chemistries, including next-generation lithium-ion, sodium-ion, and solid-state batteries. Innovations such as BYD's super-fast charging battery design and CATL's second-generation Shenxing battery, capable of charging from 5% to 80% in just 15 minutes, are reshaping performance expectations. Some Chinese startups are even developing EV batteries with an asserted range of 2,000 kilometers (1,300 miles).
Crucially, China maintains a near-total grip on the entire lithium-ion battery value chain, from raw material extraction to final battery production. The nation processes approximately 65% of the world's lithium, 85% of graphite, 70% of cathodes, and 85% of anodes. This control is further solidified by China's significant role in raw battery mineral imports (46% globally in 2023) and battery material exports (53% globally in 2023). This comprehensive control, coupled with lower production costs—with Chinese batteries reportedly 30% cheaper than those in Europe and 20% cheaper than in North America in 2024—positions China to continue dictating global battery market trends.
5 Comments
Bermudez
Unfair trade practices and state subsidies are behind this, not pure competition. It's an uneven playing field.
Coccinella
Smart strategic investments and global expansion. They're playing the long game brilliantly.
ZmeeLove
This isn't about competition; it's about controlling critical resources. A dangerous precedent.
Habibi
The article highlights impressive technological leaps and production scale, which is great for climate goals. However, the complete control over raw materials and processing could be leveraged politically in the future, posing a challenge to international relations.
Muchacha
We need to invest heavily in domestic production now. This situation is unsustainable.