Driven by the dual impetus of global energy transition and the rapid development of the new energy vehicle (NEV) industry, the lithium - ion battery sector has witnessed explosive growth. Among its key application areas, energy storage batteries and power batteries have attracted significant attention due to their market share distribution and competitive dynamics. From the global market to the Chinese market, both types of batteries have shown remarkable growth in shipment and installation volumes, with market share highly concentrated among leading enterprises. Chinese companies, leveraging their technological and production capacity advantages, have established a dominant position in the global competition.​

Power Batteries: Chinese Enterprises Dominate 60% of the Global Market Driven by NEVs​

As the core component of NEVs, the market scale of power batteries is closely tied to the penetration rate of NEVs. Since 2024, the global power battery market has presented a pattern of "dominance by Chinese enterprises and concentration among leading players", with lithium iron phosphate (LFP) batteries emerging as the dominant technical route.​

In terms of the global market share, the global shipment volume of power batteries reached 998 GWh in 2024. The combined market share of the top 10 enterprises accounted for 90% of the total, indicating a significant increase in industry concentration. Chinese enterprises performed exceptionally well, with 6 companies ranking among the global top 10 and collectively holding a market share of 69%, nearly monopolizing 70% of the global market. South Korean enterprises followed closely, with 3 companies contributing a combined 16% of the market share. Only 1 Japanese enterprise made it to the list, with a market share of 3%, reflecting a continuous decline in its global competitiveness.​

Among the leading enterprises, CATL and BYD have formed a "dual - giant" pattern. In 2024, CATL's global power battery installation volume exceeded 300 GWh for the first time, securing 33.6% of the global market share and maintaining its position as the world's top player. By virtue of its advantages in technological research and development as well as production scale, CATL has further widened the gap with its competitors. Relying on the rapid growth in NEV sales, BYD achieved an installation volume of 153.7 GWh, capturing 17.2% of the global market share and ranking second worldwide. In addition, other Chinese enterprises such as GAC Aion New Energy Battery, Guoxuan High - Tech, EVE Energy, and Sunwoda also made it into the global top 10, with market shares of 4.4%, 2.8%, 2.5%, and 2.1% respectively, further consolidating China's leading position in the global power battery market.​

From the perspective of the Chinese domestic market, the cumulative sales volume of power batteries in China reached 485.5 GWh from January to June 2025, accounting for 73.7% of the total sales of power batteries and other types of batteries, thus becoming the core application area of lithium - ion batteries. In terms of technical routes, LFP batteries, due to their advantages of low cost and high safety, have been continuously squeezing the market share of ternary lithium batteries. In the first half of the year, the cumulative installation volume of LFP batteries accounted for 81.4% of the total domestic power battery installation volume, while that of ternary lithium batteries only accounted for 18.5%. When broken down by enterprises, CATL led the LFP battery segment with a market share of 36.8%. BYD, on the other hand, almost exclusively adopted LFP batteries across its entire product line. Relying on its vertical integration advantages, BYD's market share in LFP batteries was close to 30%. Together, the two enterprises occupied nearly 70% of the domestic LFP battery market.​

International Market Competition and Cooperation​

On the international stage, competition and cooperation among power battery enterprises have been continuously deepening. CATL is not only a major supplier for Chinese NEV manufacturers such as ZEEKR, AITO, and Li Auto but has also successfully entered the supply chains of global NEV giants including Tesla, BMW, Mercedes - Benz, and Volkswagen. Its German factory has obtained dual certifications from Volkswagen Group's module testing laboratory and cell testing laboratory. Projects such as its Hungarian factory and the joint venture factory with Stellantis in Spain are also advancing steadily, accelerating its global layout. BYD has also been actively expanding its overseas market presence, with its products entering Asian and European markets, including South Korea. As some models of automakers such as Xiaomi, Tesla, Toyota, and XPeng have started to adopt BYD batteries, the overseas sales volume of BYD's power batteries is expected to further increase.​

Meanwhile, cooperation between international automakers and battery enterprises has become increasingly close. Volkswagen has deepened its cooperation with Guoxuan High - Tech to ensure battery supply for its markets in China and around the world. General Motors and LG Energy Solution have established a joint venture to jointly develop and produce NEV batteries. This cross - border cooperation model not only helps automakers secure a stable source of batteries but also assists battery enterprises in expanding their market share and enhancing their technological capabilities.​

Impact of Trade Policies and Geopolitics​

Trade policies and geopolitical factors have exerted a significant impact on the international power battery market. After the introduction of the U.S. Inflation Reduction Act, tax credits were offered to eligible NEVs. While promoting the development of the domestic NEV industry, this policy has also prompted battery enterprises to accelerate their layout in the United States. Although CATL has not built factories directly in the U.S., it has been supplying the U.S. market indirectly through cooperation with overseas clients. BYD, on the other hand, has been proactively responding to policy changes by exporting NEVs equipped with its own batteries.​

In Europe, the EU has been continuously improving battery regulations, imposing higher requirements on battery carbon footprint and recycling. This has driven Chinese battery enterprises to increase their R&D investment and optimize production processes to meet the access standards of the European market. For instance, CATL has reduced carbon emissions in the battery production process through technological innovation, thereby enhancing the competitiveness of its products in the European market.​

Energy Storage Batteries: With Explosive Demand Growth, Chinese Enterprises Account for Over 90% of the Global Market, and CATL Maintains Its Leading Position​

Driven by the rapid release of global energy storage demand (especially demand for solar - storage projects and grid energy storage), the energy storage battery market has entered a "boom period" since 2024. Chinese enterprises, relying on their advantages in production capacity and cost, have almost monopolized the global market, with the market share of leading enterprises continuing to rise.​

In terms of the global market share, the global shipment volume of energy storage batteries reached 301 GWh in 2024, representing a year - on - year growth of over 80%. The demand growth was mainly driven by deliveries during the U.S. tariff window period and solar - storage projects in the Middle East. Similar to the power battery market, the energy storage battery market also presents a pattern of "dominance by Chinese enterprises". Among the top 10 global energy storage battery enterprises, 8 are Chinese companies, with a combined market share of over 90%. The shipment volume of Japanese and South Korean enterprises is only one - tenth of that of Chinese enterprises, and they barely have any competitiveness.​

In the competition among leading enterprises, CATL still leads the world. In 2024, CATL's shipment volume of energy storage batteries reached 110 GWh, accounting for 36.5% of the global market share and ranking first. With sufficient orders for energy storage batteries (such as large - scale solar - storage projects in the Middle East), CATL has further consolidated its market position. EVE Energy ranked second with a shipment volume of 40 GWh and a global market share of 13.3%, leveraging the advantages of cylindrical battery technology to achieve outstanding performance in the residential energy storage market. BYD ranked third with a shipment volume of 27 GWh and a market share of 9%.​

Since 2025, the competitive pattern of the energy storage battery market has undergone slight changes, with emerging enterprises accelerating their rise. Data as of August 2025 shows that CATL's global market share of energy storage cells increased by 3.1 percentage points month - on - month to 32.4%, still maintaining the top position. EVE Energy remained in second place with a market share of 10.7%. Haichen Energy Storage, by virtue of its breakthroughs in large - scale energy storage projects, surpassed BYD to rank third, with a market share of 8.9%. Chuning New Energy followed closely, ranking fourth with a market share of 8.7%. BYD, due to its focus shifting to power batteries, saw a slight decline in its market share of energy storage cells to 7.8%, ranking fifth. Overall, although there were slight fluctuations in the market share of leading enterprises in the global energy storage battery market, Chinese enterprises still hold an absolute dominant position, and the industry concentration has further increased compared with 2024.​

International Market Competition and Cooperation​

In the field of energy storage batteries, Chinese enterprises have also performed excellently in the international market. CATL's energy storage batteries have been applied in more than 1,700 projects worldwide, and the company has established long - term cooperative relationships with clients in regions such as the Middle East, Europe, and North America. Its products are widely used in scenarios such as large - scale energy storage power stations and distributed energy systems. EVE Energy, relying on its cylindrical energy storage battery technology, has continuously increased its market share in the overseas residential energy storage market, with its products selling well in regions such as Europe, America, and Japan.​

Cooperation between international energy enterprises and Chinese energy storage battery enterprises has been on the rise. France's ENGIE Group has reached a cooperation agreement with Envision AESC to jointly develop energy storage projects. U.S. energy storage integrator Powin Energy has deepened its cooperation with CATL to expand the supply scale of energy storage systems. This cooperation model gives full play to the technological and production capacity advantages of Chinese enterprises and combines them with the market channels and project experience of international energy enterprises, thereby promoting the development of the global energy storage industry.​

Impact of Trade Policies and Geopolitics​

The energy storage battery industry is also affected by trade policies and geopolitical factors. The United States has imposed tariffs on imported energy storage batteries and related components, which has increased the export costs of Chinese enterprises to a certain extent. However, Chinese enterprises have responded by building factories overseas and optimizing the supply chain. For example, some enterprises have built assembly plants in the U.S. to reduce the impact of tariffs and improve the localization rate of products to meet the needs of the local market.​

In Europe, driven by green energy policies, the demand for energy storage batteries in the market has been continuously growing. Nevertheless, the EU has imposed increasingly strict standards on the safety and environmental protection of energy storage batteries. Chinese enterprises need to increase their R&D investment and improve the quality and environmental performance of their products to maintain their competitiveness in the European market. For example, they can reduce the risk of battery thermal runaway and improve the battery recycling rate by modifying battery materials and optimizing production processes, in line with the standards of the European market.​

Conclusion: The Two Types of Batteries Develop in Tandem, and Chinese Enterprises Become Core Global Players​

Both the power battery and energy storage battery markets currently exhibit the characteristics of "high demand growth, dominance by Chinese enterprises, and concentration among leading players". Benefiting from the increase in NEV penetration rate, Chinese enterprises have monopolized over 60% of the global power battery market, with CATL and BYD forming a "dual - giant" pattern. Driven by the global energy transition, the energy storage battery market has entered a boom period, with Chinese enterprises accounting for over 90% of the global market share. In the competition among leading enterprises, while CATL maintains a stable leading position, emerging enterprises such as Haichen Energy Storage are also rising rapidly.​

In the future, with the accelerated industrialization of solid - state batteries and the continuous support of energy storage policies, the market scale of power batteries and energy storage batteries will further expand. Chinese enterprises are expected to continuously consolidate their global market position by virtue of their advantages in technological R&D, production scale, and cost control, and promote the global lithium - ion battery industry to align with "Chinese standards". However, at the same time, enterprises also need to pay close attention to risks such as changes in international trade policies and geopolitical conflicts. By strengthening technological innovation, optimizing supply chain layout, and deepening international cooperation, they can actively respond to challenges and gain greater advantages in the competition of the global lithium - ion battery market.​