China Battery Market Size (2024 - 2029)

China Battery Market Size Summary

The Chinese battery market is poised for substantial growth, driven by the rapid adoption of electric vehicles, the expanding renewable energy sector, and the increasing sales of consumer electronics. Despite the challenges posed by a demand-supply mismatch of raw materials, the market has shown resilience, with energy storage systems continuing to thrive even during the COVID-19 pandemic. The automotive batteries segment is expected to experience significant expansion, fueled by the rising demand for new vehicles and the integration of renewable energy with national grids. The declining prices of lithium-ion batteries are anticipated to be a key factor propelling the market forward, making them the preferred choice for various applications, including electric vehicles and consumer electronics.

China's dominance in the lithium-ion battery manufacturing sector is rapidly increasing, with companies like CATL leading the charge in revenue and production growth. The country's competitive advantage, characterized by lower labor costs and economies of scale, has contributed to the continuous decline in battery prices. This trend is expected to solidify lithium-ion batteries as the chemistry of choice across all energy storage markets, including grid-scale and residential storage. The anticipated reduction in battery costs is likely to make electric vehicles more price-competitive, driving their widespread adoption. The Chinese battery market remains fragmented, with major players such as CATL, GS Yuasa International Ltd, and TianJin Lishen Battery Joint-Stock Co. Ltd. continuing to innovate and expand their offerings.