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The Chinese power battery market is experiencing a period of rapid growth, but oversupply conditions indicate a more competitive landscape. According to the China Automotive Battery Innovation Alliance (CABIA), the cumulative power battery installation reached 299.6 GWh in the first half of 2025, showing a year-on-year growth of 47.3%.
In this evolving market, the two dominant players, Contemporary Amperex Technology Co., Limited (CATL) and BYD, are experiencing slight erosion of their market shares. CATL, the market leader, saw a decline of 3.33 percentage points compared to the previous year, while BYD followed closely with a decrease of 1.55 percentage points. Together, they account for 66.6% of the market, indicating a strong but slightly softened duopoly.
Great Wall's Svolt secured seventh place in H1 installation volumes, and Geely's Jidian took tenth place, both suggesting a potential intensification of market diversification. Other suppliers such as Gotion Tech and Rept Battero maintain smaller shares, with Gotion at around 15.48 GWh installed capacity and Rept Battero at 6.59 GWh.
CATL continues to lead the power battery market, dominating in NCM batteries and performing strongly in LFP batteries. Meanwhile, BYD is expanding internationally, with its luxury brand Yangwang set to enter Europe in 2026, following Denza. The company's exports surged 84.4% in H1 2025, driven by its vehicle export boom, leveraging mostly its own batteries.
In the energy storage sector, CATL also leads globally by shipments, with BYD and Rept Battero among the top Chinese companies. Gotion appears mainly in backup power battery segments besides vehicle power batteries.
This trend suggests that while the leading companies still hold significant market power, new entrants and specialized firms are gradually finding their footing, leading to a more diversified industrial ecosystem. The current market landscape highlights the need for China's power battery leaders to innovate, optimize overseas business, and potentially face intensified competition from emerging players.
[1] Data source: China Electric Vehicle Charging Infrastructure Alliance (EVCIA) [2] Data source: SNE Research [3] Data source: CABIA
- The rapid growth in the Chinese power battery market, with its dominance by CATL and BYD, is attracting increasing interest from other sectors, such as technology and finance, as they seek to invest in the evolving landscape.
- As the automotive industry continues its transition towards electric vehicles, transportation companies might also explore partnerships with power battery suppliers, recognizing the importance of energy-efficient batteries in reducing carbon emissions and enhancing overall efficiency.
- Meanwhile, the expanding overseas presence of companies like BYD, with its plans to launch a luxury brand in Europe, reflects the growing influence of Chinese power battery manufacturers in the global energy market, potentially sparking new collaborations and competition in the industry, finance, and technology domains.
