China’s new energy vehicle (NEV) market is undergoing intensified consolidation. According to data from the China Chemistry and Physical Power Sources Industry Association (CAPP), NEV sales in the first half of 2025 reached 6.94 million units, up 40.3% year-on-year, accounting for 44.3% of total auto sales. However, the power battery sector is increasingly concentrated: among 575 new NEV models submitted to the Ministry of Industry and Information Technology (MIIT) this year, only 19 battery suppliers are involved, with the top 10 companies covering 542 models.

Market Overview: Growth Amid Tightening Competition
China’s power battery installed capacity reached 302.2GWh in H1 2025, a 48.8% surge from the previous year. Lithium iron phosphate (LFP) batteries dominated with an 81.4% share, driven by cost efficiency and stability. Plug-in hybrid (PHEV) battery demand soared by 21.4%, reshaping market dynamics.

Accelerated model iterations and price wars among automakers have intensified demands for customized battery solutions. MIIT data shows 575 new NEV models were submitted from January to July 2025, but only 19 battery suppliers secured partnerships, highlighting the sector’s high concentration.

Top Players: CATL Maintains Leadership, BYD and Partners Expand
CATL: Unchallenged Leader with 198 Model Integrations
CATL retained its market leadership with 130.2GWh installed capacity (43.1% market share) in H1 2025. Its batteries power flagship models such as the Tesla Model Y, Xiaomi YU7, Aito M8, and Li Auto i6, collaborating with over 40 automakers including Tesla, BYD, Volkswagen, Xiaomi, and NIO. The company leverages both LFP and NMC chemistries to meet diverse demands.

Fudi Battery: BYD Dominance with Growing External Sales
Fudi Battery reported 73GWh installed capacity (24.2% share), primarily supplying BYD models (e.g., e7, Tang L, Han L). Externally, it expanded partnerships with Xiaomi’s YU7, Hyundai’s ELEXIO, and Jiangling vehicles, signaling strengthened third-party sales capabilities.

CALB: Key Partner for XPeng and GAC Aion in PHEV Segment
Contemporary Amperex Technology Co. (CALB) secured 19.5GWh installed capacity (6.5% share), powering XPeng’s P7/X9, GAC Aion’s Hyper HL, and Leapmotor’s B01. Its strength lies in the PHEV market, supplying models like the Lynk & Co 900 EM-P and Changan G318.

Gotion High-Tech: Deep Integration with Chery in Hybrid Systems
Gotion High-Tech ranked fourth with 17.2GWh installed capacity (5.7% share), focusing on Chery’s hybrid models (e.g., Fengyun T9 C-DM). Over 60% of its PHEV installations target Chery’s brands, including iCAR and EXEED, solidifying its role as a hybrid battery specialist.

Emerging Players: Differentiation Strategies
EVE Energy: Partnered with XPeng’s P7+ and Geely’s Star N9, emphasizing 800V high-voltage platforms for premium EVs.
Sunwoda: Exclusively supplies Nissan N7 (20,000 pre-orders in 50 days) and expands into Li Auto i6 and岚图知音 (VOYAH Free).
SVOLT: Boosts PHEV presence with 78% of its 32 model integrations, powering models like HAVAL Tenglong and Leapmotor C16.
Other Players: Farasis Energy (Smart #1), Zenergy Power (Leapmotor C10), and Ji Yao Power (Geely models) target niche markets.
Future Outlook: Solid-State Battleground Looms
2025 marks the “solid-state battery breakthrough year,” with SAIC and Chery planning semi-/full-solid-state models featuring 400Wh/kg+ energy density. CATL and BYD are leveraging R&D and capacity expansion to maintain dominance, while second-tier players must innovate to survive.
With NEV penetration surpassing 44%, China’s battery sector is shifting from fragmentation to hyper-concentration. CATL and BYD-led giants are redefining the landscape through technical depth and supply chain integration. As solid-state commercialization approaches, the industry braces for another round of disruption.