Chinese electric vehicle battery manufacturers have strengthened their dominance in the global market, capturing more than 70% share in 2025, up from under 50% in 2021, according to industry data.
Leading the sector, Contemporary Amperex Technology Co. Limited (CATL) held a 39.2% global market share based on installed capacity, maintaining its top position. The company reported a 42% jump in net profit to a record RMB 72.2 billion ($10.5 billion), underscoring its scale and competitiveness.
Chinese EV giant BYD ranked second, expanding its battery supply beyond in-house use to clients such as Xiaomi and Stellantis. Other Chinese players, including China Aviation Lithium Battery and Gotion High-tech, also increased shipments.
Overall, six of the world’s top ten battery makers were Chinese in 2025, with a combined market share of 70.4%, data from SNE Research showed.
The surge has been driven by strong domestic demand—China accounted for about 60% of global battery installations—and government subsidies supporting electric vehicle adoption. Chinese firms have also expanded aggressively into Europe, benefiting from limited local competition.
In contrast, South Korean battery makers have seen their global share fall to 15.3%, down from over 30% in 2021. LG Energy Solution, the world’s third-largest player, reported a 76% drop in net profit in 2025, while SK On and Samsung SDI posted losses.
The decline reflects heavy reliance on the US market, where policy shifts have slowed EV demand growth. Japanese player Panasonic Holdings ranked seventh globally with less than 4% market share and has delayed expansion plans in the US amid weaker demand from key customer Tesla.
Despite their strong position, Chinese manufacturers face potential headwinds. A recent reduction in government subsidies contributed to a slowdown in domestic EV sales early in 2026. In response, companies like CATL and CALB are accelerating overseas expansion, including new production facilities in Europe and Southeast Asia.
The global EV battery market continues to grow, with total installations rising 32% year-on-year to 1,187 gigawatt-hours in 2025, even as regional demand patterns shift.
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