Summary:According to our CCM survey, in the first quarter of 2025, China's lithium battery exports and value increased by 28% and 32% respectively, and the imported lithium resources and value increased by 14% and 18% respectively. Technically, the competition between high-nickel ternary and lithium iron phosphate continues, and the lithium battery recycling market has exceeded 80 billion yuan. The competition among enterprises is fierce, and the leading enterprises are accelerating their overseas layout, facing international competition and resource geopolitical risks.
1 Import and export trade data
Export situation: In the first quarter of 2025, China's total lithium battery exports were 128GWh, a year-on-year increase of 28%, and the total export volume reached US$8.5 billion, a year-on-year increase of 32%. Among them, the export volume of power batteries reached 78GWh, accounting for 61% of the total export volume, mainly flowing to Germany, the United States and France; the export volume of energy storage batteries was 35GWh, accounting for 27%, and the United States, South Africa and Vietnam were the core markets; the export volume of consumer electronic batteries was 15GWh, accounting for 12%, and the main destinations were South Korea, India and Mexico.
Import situation: In the first quarter of 2025, China's total lithium resource imports were 82,000 tons of lithium equivalent (LCE), a year-on-year increase of 14%, and the total import value was US$2.8 billion, a year-on-year increase of 18%. Among them, lithium ore (spodumene) accounted for 65% of the total imports, mainly from Australia (62%) and Africa.
Technology Development
2 Competition in mainstream technical routes: In 2025, the two technical routes of high-nickel ternary and lithium iron phosphate are still competing in the market. High-nickel ternary batteries have certain advantages in energy density and other aspects, but lithium iron phosphate batteries also occupy an important position in some application scenarios due to their high safety and low cost.
3 New technology breakthroughs: In 2025, the global lithium battery recycling market size will exceed 80 billion yuan, and the application of black powder direct regeneration technology can reduce the production cost of positive electrode materials by 25%. In addition, some companies such as CATL have made progress in battery integration technology, launched integrated chassis products, and "packaged" batteries and chassis to car companies.
4 Competition Dynamics of Enterprises
Domestic Competition: Chinese lithium battery enterprises are in fierce competition, and leading enterprises such as BYD and CATL occupy a large market share by virtue of their technological advantages and scale effects. BYD has layouts in both power batteries and energy storage batteries, while CATL occupies a leading position in the field of power batteries. In addition, companies such as Xinwanda, Sinotruk, and Honeycomb Energy have also gained a certain market share in their respective fields.
Overseas Layout: Chinese lithium battery enterprises are accelerating their overseas layout, with Europe and Southeast Asia as the main destinations. Some enterprises enter overseas markets by investing in factories or licensing technology, such as BYD's assembly plant in Monterrey, Mexico, to circumvent the localization restrictions in the United States. At the same time, Busan Port in South Korea has become a key channel for Chinese-funded batteries to enter Southeast Asian countries such as Vietnam and Thailand.
International Competition: In the global market, Chinese lithium battery enterprises face competition from companies in Japan and South Korea. Japanese and Korean companies have certain advantages in the research and development of high-end battery materials and solid-state battery technology. For example, Toyota accounts for more than 50% of solid-state battery patents, which may limit the penetration of Chinese companies into the high-end European market.
5 Market dynamics and risks
Market dynamics: The EU carbon tariff pilot was launched in January 2025, and Chinese battery companies accelerated their stockpiling of goods in German factories to avoid additional carbon costs. The Sino-US trade war has been temporarily suspended, and the US tariffs on Chinese lithium batteries have been significantly reduced, which has brought a turning point for China's lithium battery exports to the United States.
Risk warning: Resource geopolitical risks such as the interruption of cobalt ore flows in the Democratic Republic of the Congo and the tightening of lithium ore export quotas in Australia may push up raw material costs in the second quarter of 2025. In addition, the upgrading of technical barriers may also have a certain impact on the development of Chinese lithium battery companies.
More information can be found at CCM Li-lithium battery China Monthly Report.
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