China's Top Battery Installation Suppliers in H1 2025 - CATL and BYD Account for a Shared 66.6% Market Dominance
China's Power Battery Market Shows Signs of Diversification
In the first half of 2025, China's power battery market remains concentrated, with CATL and BYD holding a combined 66.6% market share. However, the slight decrease in their market shares suggests a gradual shift towards a more diversified industrial ecosystem.
CATL leads the market with an installation volume of 128.6 GWh (43.05% market share), while BYD follows closely with 70.37 GWh (23.55%). Other domestic producers like CALB, Gotion Tech, EVE Energy, and Sunwoda are gaining ground, with combined installations of approximately 100 GWh, accounting for 33.4% of the market.
The market's concentration reflects a duopoly, but emerging challengers are making their presence felt. For instance, Gotion Tech saw a year-on-year market share increase of 1.62 percentage points in the first half of 2025.
The surge in power battery installations in China is primarily driven by lithium iron phosphate (LFP) batteries, which account for 81.4% of the installed capacity. Both CATL and BYD focus heavily on LFP chemistry, with BYD's 70.34 GWh being almost exclusively LFP.
The power battery market is facing substantial production oversupply, with capacity at roughly 4,800 GWh for an expected 1,000 GWh demand in 2025. To counter this, battery makers are aggressively seeking overseas expansion. China exported 81.6 GWh of batteries in H1 2025, a 26.5% increase year-on-year. BYD's exports especially skyrocketed by 84.4%, reflecting its booming vehicle exports.
Other companies like SVOLT are also benefiting from overseas expansions and partnerships, particularly in Europe, signalling a slow shift in the global footprint beyond the duopoly.
In the ranking of H1 2025 China power battery installation, the source is unspecified. However, Geely's Jidian took tenth place, while Great Wall's Svolt secured seventh place. Rept Battero achieved a 0.35 percentage point growth in market share in the first half of 2025.
Despite CATL and BYD's dominance, the gradual decline in market concentration indicates a more competitive landscape in the future. More automakers are actively working to lessen their dependence on these two companies, leading to a gradual reduction in market concentration. The overall industry is experiencing a shift towards a more diversified market.
Technology plays a crucial role in the power battery industry, as advancements in battery technology drive the surge in power battery installations in China.
In the realm of sports, China's automakers like Geely and Great Wall are making their mark in the power battery market, hinting at potential crossovers between the technology and sports sectors.
