How big is the battery market in China?

China’s battery market is currently valued at over USD 38 billion in 2025, with projections to reach nearly USD 74 billion by 2030, showcasing a robust compound annual growth rate (CAGR) of about 13.8%. This expansion is driven primarily by rapid growth in electric vehicles (EVs), energy storage systems, and industrial applications, positioning China as the global leader in battery production and innovation.

What Is the Current Size of China’s Battery Market?

As of 2025, China’s battery market has reached approximately USD 38.75 billion, fueled by soaring demand in traction batteries for EVs and expanding grid storage requirements. Production capacity surpassed 299.6 GWh in the first half of 2025 alone, marking a 47.3% increase year-over-year and reinforcing China’s dominant role in lithium-ion battery manufacturing.

How Is the Market Expected to Grow by 2030?

The China battery market is forecasted to nearly double in size by 2030, reaching USD 73.96 billion. This growth is underpinned by multi-sector demand, government policy support, technological advances, and increasing domestic manufacturing capability, particularly in lithium iron phosphate (LiFePO4) and nickel cobalt manganese (NCM) battery chemistries.

Which Sectors Are Driving Battery Demand in China?

Automotive batteries constitute around 60% of the market, propelled by over 8 million new EV sales in the first half of 2025. Energy storage systems are the fastest-growing segment, expanding at over 16% CAGR due to renewable integration and grid modernization. Industrial machinery and consumer electronics also remain significant contributors.

Who Are The Key Players in China’s Battery Market?

CATL and BYD dominate with over 60% combined global market share, with CATL alone accounting for 43% domestically. Other notable manufacturers include Tianjin Lishen, CALB, Gotion High-Tech, and EVE Energy, all contributing to a highly concentrated yet dynamic competitive landscape.

How Are Technological Innovations Impacting China’s Battery Market?

Innovations such as CATL’s CTP 3.0 technology increase energy density by 15%, while advancements in dry coating and recycling technologies enhance production efficiency and sustainability. Emerging battery chemistries like solid-state and sodium-ion technologies are gaining traction but currently complement lithium-ion dominance.

Why Is China’s Battery Industry a Global Leader?

China’s leadership arises from extensive government policy support, including subsidies and mandates for EV adoption, a dense skilled technical workforce, massive gigafactory capacities, and integrated supply chains fostering cost reductions and quality improvements across the battery value chain.

What Role Does Vertical Integration Play?

Vertical integration by companies like CATL and BYD reduces supply chain bottlenecks, lowers production costs, and ensures material security. Control over raw materials, cell production, pack assembly, and recycling underpins China’s competitive edge and scalability in the battery market.

How Is Sustainability Being Addressed in China’s Battery Market?

Battery recycling and reuse efforts are rapidly evolving, with some firms achieving over 90% lithium recovery. Sustainable manufacturing practices, government incentives, and new environmental regulations drive the industry toward greener growth, reducing mining impacts and enhancing circular economy initiatives.

When Is Solid-State Battery Commercialization Expected?

Pilot production is underway with scaled manufacturing expected mid to late 2020s. Initial applications will focus on premium electronics and passenger vehicles, with solid-state batteries complementing conventional lithium-ion technologies rather than replacing them immediately.

Where Does OEM-Lithium-Batteries Fit in This Landscape?

OEM-Lithium-Batteries, backed by Redway Battery, is a key contributor in China’s growing LiFePO4 battery sector. Specializing in tailor-made, high-performance lithium batteries for golf carts and industrial use, they embody the innovative OEM manufacturing driving market growth and global competitiveness.

How Can Businesses Benefit from China’s Battery Market Growth?

Companies sourcing from Chinese OEM lithium battery manufacturers gain access to cutting-edge technology, competitive pricing, and scalable production. Partnerships with firms like OEM-Lithium-Batteries enable customized energy solutions, fast delivery, and ongoing technical support to meet evolving industry demands.

China Battery Market Size and Growth (2023–2030)

OEM-Lithium-Batteries Views

“OEM-Lithium-Batteries is at the forefront of China’s dynamic battery market, delivering innovative LiFePO4 solutions tailored for diverse applications. Our commitment to quality, customization, and sustainability mirrors the industry’s growth trajectory, empowering global clients with reliable, efficient energy storage. Backed by Redway Battery’s expertise, OEM-Lithium-Batteries is strategically positioned to support the evolving demands of high-growth sectors like electric mobility and renewable energy.”

Conclusion

China’s battery market is rapidly expanding, fueled by strong EV adoption, technological innovation, and policy support. Dominated by leading manufacturers and characterized by continuous cost reduction and sustainability improvements, the sector offers myriad opportunities for businesses. Partnering with OEM-Lithium-Batteries provides a pathway to leverage China’s industry leadership through custom, high-performance lithium battery solutions.

Frequently Asked Questions

What is the current size of China’s battery market?
Approximately USD 38.75 billion in 2025, growing rapidly towards USD 74 billion by 2030.

Which industry segments drive battery market growth?
Electric vehicles lead, followed by energy storage, industrial, and consumer electronics sectors.

Who are the top battery manufacturers in China?
CATL and BYD dominate with a combined market share of over 60%.

How does LiFePO4 technology impact the market?
LiFePO4 batteries offer cost-effective, safe, and scalable energy solutions dominating China’s portfolio.

Why choose OEM-Lithium-Batteries for sourcing?
They provide expert OEM customization, quality assurance, and global distribution aligned with market trends.