Mobility
China's EV Battery Market Surges Over 40% in 2025
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China's electric vehicle battery market saw significant growth in 2025. According to data from the China Automotive Battery Innovation Alliance (CABIA), total installed battery capacity in EVs rose to 769.7 gigawatt-hours (GWh)—a 40.4% year-over-year increase. This highlights not only the sustained momentum of e-mobility in the world’s largest auto market but also the surging demand for energy storage across all vehicle segments.
China's electric vehicle battery market saw significant growth in 2025. According to data from the China Automotive Battery Innovation Alliance (CABIA), total installed battery capacity in EVs rose to 769.7 gigawatt-hours (GWh)—a 40.4% year-over-year increase. This highlights not only the sustained momentum of e-mobility in the world’s largest auto market but also the surging demand for energy storage across all vehicle segments.
LFP Cells Take the Lead
A striking trend in the Chinese market is the dominance of lithium iron phosphate (LFP) cells. In 2025, LFP batteries accounted for approximately 81% of total installed capacity. Compared to nickel manganese cobalt (NMC) cells, LFP batteries are significantly more durable, cost-effective, and thermally stable, making them the preferred choice for the price-sensitive mass market. While LFP capacity grew by nearly 53% year-over-year, NMC cells expanded at a much slower rate of only about 3.7%.
The high demand for LFP systems is closely linked to the availability of more affordable, practical EVs that prioritize range, safety, and cost. Manufacturers like BYD and other Chinese OEMs have capitalized on this trend by shifting large portions of their lineups to LFP batteries or offering them as primary options.
Battery Production Ramps Up
The report also indicates that monthly battery production in China remained well above 2024 levels throughout 2025
These market figures reflect the broader expansion of the electric vehicle sector: the Chinese market for New Energy Vehicles (NEVs) saw powerful growth during the same period, driven by millions of units sold and strong export numbers.
Geely’s Galaxy Xingyuan Claims Top Spot for EV Sales in China
With approximately 465,775 units sold, the Geely Galaxy Xingyuan was the best-selling electric car in China, outperforming popular models like the Wuling Hongguang Mini EV and the Tesla Model Y. While BYD remains the largest manufacturer by total volume, its individual models fell short of the top three spots this time.
