As the global new energy industry booms, the lithium-ion battery industry, as its core supporting force, is embracing unprecedented development opportunities and challenges. In 2025, facing a more complex and ever-changing market environment and increasingly fierce international competition, the lithium-ion battery industry demonstrates strong growth momentum in technological innovation, market size, industrial chain collaboration, and international development.
1.Continuous Expansion of Market Size
In recent years, thanks to the rapid development of new energy vehicles, electric light vehicles, electric tools, and new energy storage fields, the lithium-ion battery market has maintained a rapid growth trajectory. According to the latest data, from January to September 2024, the cumulative production of lithium-ion batteries nationwide reached 20.36 billion units, up 12.3% year on year. In the battery segment, the total lithium-ion battery production from January to June 2024 reached 480GWh, a 20% increase year on year, with energy storage lithium-ion battery production exceeding 110GWh and new energy vehicle power lithium-ion battery installations of about 203GWh. These figures fully demonstrate the strong growth momentum of the lithium-ion battery industry in terms of market size.
Looking ahead to 2025, the thriving new energy vehicle industry and electric power storage market will continue to drive the expansion of the lithium-ion battery industry. On the one hand, after years of rapid growth, the new energy vehicle market is gradually entering a relatively stable development phase, with new energy vehicle sales accounting for about 50% of total new car sales, and the growth rate of new demand stabilizing. On the other hand, the battery energy storage market still has enormous development potential, with strong demand for new batteries in sectors such as electric heavy-duty trucks, engineering machinery, electric ships, and electric bicycles. It is estimated that the total output value of the new battery industry will reach about RMB 2 trillion in 2025, a year-on-year increase of about 20%.
2.Significant Technological Innovation Achievements
Technological innovation is the key driver for the sustained development of the lithium-ion battery industry. In 2024, China's lithium-ion battery industry made significant progress in technological innovation. In the field of lithium-ion batteries, technologies such as high-nickel ternary materials and silicon-based anode materials have continuously matured and gradually achieved industrial application, effectively enhancing battery energy density. These technological breakthroughs not only improve the performance of lithium-ion batteries but also reduce costs, enabling their application in a wider range of fields.
Contemporary Amperex Technology Co. Limited (CATL), as a leading enterprise in the lithium-ion battery industry, has achieved remarkable results in technological innovation. CATL's Tianxing logistics commercial batteries effectively address core issues such as slow energy replenishment, high integrated costs, and short transport distances for new energy commercial vehicles. Among them, the Tianxing logistics ultra-fast charging battery can achieve 4C ultra-fast charging, 12-minute replenishment for 60% state of charge (SOC), and a 350km ultra-long range; the Tianxing logistics long-range battery can achieve a 500km ultra-long range with an energy density of 200Wh/kg. The application of these innovative technologies not only enhances the performance of new energy commercial vehicles but also reduces operating costs, providing strong support for the popularization of new energy commercial vehicles.
Furthermore, significant progress has been made in the research and development of solid-state batteries in the frontier field. Solid-state batteries, with higher energy density and better safety, are regarded as an important development direction for future battery technology. Some companies have entered the small-scale or pilot testing phase of solid-state batteries, and industrial application is expected to be achieved within the next few years. Breakthroughs in solid-state battery technology are expected to change the battery technology landscape and inject new vitality into the development of the lithium-ion battery industry.
In addition to solid-state batteries, research on new battery technologies such as sodium-ion batteries, flow batteries, and hydrogen fuel cells is also accelerating. These new battery technologies have their unique advantages, such as the cost advantage of sodium-ion batteries, the long-lifespan advantage of flow batteries, and the high energy density advantage of hydrogen fuel cells. As these technologies continue to mature and achieve industrial application, the competitive landscape of the lithium-ion battery industry will diversify, bringing new growth points to the industry.
3.Strengthened Industrial Chain Collaboration
The lithium-ion battery industrial chain includes upstream raw materials, midstream battery manufacturing, and downstream applications. In recent years, collaboration among various links in China's lithium-ion battery industrial chain has been further strengthened. Upstream raw material companies ensure the supply of raw materials to midstream battery manufacturers through capacity expansion and technological upgrades; midstream battery companies have also established closer cooperative relationships with downstream new energy vehicle and energy storage system integrators to jointly promote product research and development, production, and application.
In terms of regional layout, China has initially formed new battery industrial clusters centered in Jiangsu, Guangdong, Fujian, and Sichuan. These regions have a large concentration of upstream and downstream enterprises in the industrial chain, with complete industrial supporting facilities and strong technological innovation capabilities. However, some regions still face issues such as poor connection between upstream and downstream links in the industrial chain and homogenization of industrial layout, which affect the overall efficiency of the industry.
Looking ahead to 2025, further collaboration in the industrial chain and supply chain will become an important trend in industry development. As competition in the industry intensifies, leading companies will pay more attention to industrial chain integration and collaboration, achieving resource sharing and enhancing the overall competitiveness of the industrial chain through strengthened cooperation with upstream and downstream enterprises. Central and western regions will intensify efforts in the development and utilization of upstream resources while developing battery materials and battery manufacturing industries; eastern regions will focus on technology research and development, high-end product manufacturing, and market application promotion. This optimization of regional layout will promote a balanced layout of the new battery industry nationwide and drive coordinated regional economic development.
4.New Breakthroughs in International Development
In the international market, China's lithium-ion battery industry has also performed well. According to SNE Research data, from January to September 2024, Chinese companies occupied six out of the top ten spots in global power battery installations, with a combined market share of 64.9%, with CATL and BYD ranking first and second, respectively. These companies have clear advantages in technological innovation, cost control, and industrial supporting facilities. Through strengthened international cooperation, expansion of overseas market channels, and enhancement of brand influence, they have successfully secured a place in the international market.
However, competition in the international market is also intensifying. Some countries and regions have introduced trade protection policies to protect their local industries, setting up technical barriers and tariff barriers, posing certain obstacles to the export of China's battery products. Facing these challenges, China's lithium-ion battery industry needs to continue strengthening technological innovation and industrial upgrading to enhance product competitiveness; at the same time, it needs to strengthen international cooperation and exchanges, expand diversified market channels, and reduce the risk of dependence on a single market.
5.Continuous Improvement of Safety Management and Recycling Systems
With the rapid development of the lithium-ion battery industry, the construction of safety management and recycling systems has also received increasing attention. Lithium-ion batteries generate a large amount of heat and gas during charging and discharging, which can lead to safety accidents if not handled properly. Therefore, strengthening the safety management of lithium-ion batteries is crucial. In recent years, relevant departments in China have strengthened safety supervision over the production, use, and recycling of lithium-ion batteries; at the same time, companies have actively invested in research and development of safer and more reliable battery technologies and products.
In terms of recycling, establishing a complete lithium-ion battery recycling system is an important measure to achieve resource reuse and reduce environmental pollution. In recent years, relevant departments in China have issued a series of policy documents to support the development of the lithium-ion battery recycling industry; at the same time, companies have actively invested in research and development of more efficient and environmentally friendly recycling technologies and equipment. With the continuous implementation and promotion of these policies and technologies, China's lithium-ion battery recycling industry will usher in broader development prospects.
6.Future Outlook
Looking ahead, the lithium-ion battery industry will continue to maintain a rapid growth trajectory. With the booming development of the new energy vehicle industry and the continuous expansion of the electric power storage market, the demand for lithium-ion batteries will continue to grow. At the same time, with the continuous advancement of technological innovation and industrial upgrading, the performance of lithium-ion batteries will further improve, and costs will further decrease; this will provide strong support for the application of lithium-ion batteries in a wider range of fields.
However, the development of the lithium-ion battery industry also faces many challenges. Factors such as fluctuations in raw material prices, international trade frictions, and environmental regulatory constraints all bring a certain degree of uncertainty to the industry's development. Therefore, China's lithium-ion battery industry needs to continue strengthening technological innovation and industrial upgrading; at the same time, it needs to strengthen international cooperation and exchanges, expand diversified market channels, and improve safety management and recycling systems to address the challenges and opportunities in the future market.
