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In 2025, China’s battery industry continues to accelerate its “going global” momentum, with remarkable performance across production, exports, and overseas market expansion. The following analysis summarizes the year’s situation from five dimensions: overall growth, export structure and destinations, policy and international environment, challenges and risks, and future outlook.

I. Overall Scale and Growth

1. Sustained strong growth in export volume and value
   In the first half of 2025, China exported approximately 2.156 billion lithium-ion batteries, up 17.6% year-on-year, with an export value of USD 34.096 billion, growing 25.1% year-on-year.

2. Significant rise in export energy volume
   Total exported battery capacity (including EV and energy storage batteries) reached 81.2 GWh, representing a 36.5% increase year-on-year. Exports for energy storage systems surged 232.8%, the fastest-growing segment.

3. Strong momentum built upon 2024 performance
   For context, in 2024 China exported about 197.1 GWh of batteries, a 29.2% increase from the previous year, accounting for roughly 19% of total sales.

These figures show that China’s battery industry is no longer driven solely by domestic demand — exports are now a major growth engine, reflecting its deep integration into the global supply chain.

II. Export Structure and Destination Markets

1. Export Applications

   • Power batteries for EVs remain dominant, accounting for roughly 64.1% of total battery exports (81.2 GWh).

   • Energy storage batteries grew the fastest, reaching 45.6 GWh, a year-on-year increase of 232.8%.

2. Technological Composition
   Exported products include both NMC (nickel–manganese–cobalt) and LFP (lithium iron phosphate) chemistries. In the first half of 2025, NMC batteries made up 59.1%, while LFP accounted for 40.9%. In June alone, China exported 15.8 GWh of power batteries (57% NMC and 43% LFP).

3. Geographical Distribution
   Chinese battery exports are expanding beyond traditional European and American markets, with rapid growth in ASEAN, Africa, and other emerging regions. These new frontiers have become key drivers of export growth as Chinese companies diversify to mitigate geopolitical risks.

4. Industrial Chain Strength
   China maintains a dominant position in the processing and manufacturing of key battery materials and components. Its strong presence in cathode, anode, and battery-pack production continues to anchor its leadership in the global supply chain.

In short, Chinese battery exports are growing not only in scale but also in diversity — covering more applications, chemistries, and geographic regions.

III. Policy and International Environment

1. Tighter export controls
   In October 2025, China’s Ministry of Commerce and General Administration of Customs jointly announced that from November 8, 2025, the export of lithium-ion batteries, cathode materials, artificial graphite anodes, and related equipment would require export permits, effectively bringing them under official export control.

2. Complex global trade climate
   As geopolitical competition intensifies in the new energy sector, China faces increasing scrutiny and trade barriers from major economies such as the U.S. and India. In response, China has accelerated trade diversification toward Southeast Asia, Africa, and Latin America to reduce dependency on Western markets.

3. Domestic industrial upgrading
   Meanwhile, China’s own production capacity and technological advancement have surged. Average battery prices reportedly fell by about 30% in 2024, improving competitiveness in global markets.

In summary, while policies and global dynamics provide both opportunities and constraints, China’s cost advantage and production scale continue to underpin its expanding export base.

IV. Major Challenges and Risks

1. Trade barriers and export restrictions
   Tighter export controls and growing trade protectionism in overseas markets require companies to strengthen compliance and adapt to more complex export procedures.

2. Price pressure and profit margins
   Although export volumes are rising, unit prices are falling. The trend of “rising quantity but declining value” may threaten profitability if companies rely solely on price competition.

3. Overcapacity and intensified competition
   Global and domestic capacity expansion is outpacing demand. By the end of 2025, China’s cumulative planned capacity could exceed global requirements, creating overcapacity risks and driving price wars.

4. Technical standards and local adaptation
   Different countries have varied standards for battery safety, certification, recycling, and environmental performance. Chinese companies must invest more in local certification, service networks, and cultural adaptation when entering new markets.

5. Raw material and supply chain volatility
   While China leads in processing lithium, cobalt, graphite, and nickel, raw material price fluctuations and import dependencies still pose uncertainty for export profitability.

These factors highlight that, despite strong global demand, long-term sustainability requires more than scale — it demands technological, operational, and regulatory sophistication.

V. Future Outlook

1. Broader application fields
   Beyond EV batteries, energy storage, industrial backup power, and consumer electronics will drive the next wave of export growth — as evidenced by the 200%+ surge in energy storage exports.

2. Technological upgrading and diversification
   Future exports will shift from volume-based competition to value-based differentiation, with greater emphasis on high-energy-density, fast-charging, and low-cobalt technologies.

3. Localized overseas production
   To overcome trade barriers and improve competitiveness, more Chinese manufacturers are expected to establish overseas plants, service centers, and joint ventures with local automakers or energy companies.

4. Circular economy and recycling leadership
   China’s advanced battery recycling system provides a future edge. Exports may increasingly include remanufactured and recycled battery solutions, extending China’s global industrial influence.

5. Dual regulatory adaptation
   Chinese exporters must comply simultaneously with domestic export licensing rules and foreign environmental and safety regulations, requiring stronger compliance management and traceability systems.