This is how absolute domain has achieved

China dominates The lithium -ion battery market with an indisputable forcefulness. If we stick to electric cars the country led by Xi Jinping Fabrica 57% of batteries that these vehicles use. Catl and Byd are the biggest manufacturers of energy accumulators of the planet with A market share in 2023 34% and 16% respectively. And if we look at electronic devices equipped with batteries, your domain is equally forceful.

The evolution that the lithium batteries industry has experienced in this Asian country is the result of a very ambitious strategy pergenerated by the Government a decade ago. In 2015 President Xi Jinping announced the plan “Made in China 2025”an initiative that pursued to take the country to a world leadership position in thirteen strategic technologies. In some of them, such as the production of medicines, large tractors, the manufacture of industrial machinery, the artificial intelligence (AI) or the robots does not lead, but has established itself in a competitive position. In batteries, however, he leads clearly.

China’s success is the result of a well -measured strategy

China has gone from having a share in the global battery market of 50% in 2015 to no less than 80% today. A decade ago his position was already good, but in 2025 his domain is absolute. Another fact that we are not overlooking is that the global production of lithium batteries in 2015 amounted to 42 GWh, while in 2024 this figure increased to 1,400 GWh. This growth is mainly explained thanks to the intervention of this Asian country.

In any case, the really interesting thing is to know what strategy has allowed the country of Xi Jinping to control such an important market in such a forceful way. As we can intuit, this success is the result of several factors. On the one hand China bet early on LFP batteries (Lithium Iron Phosphate), which use iron and lithium phosphate instead of cobalt and nickel, so they are cheaper and more safe, through subsidies of public vehicles. This happened in 2009. Years later, in 2016, the State subsidies prioritized the improvement of the benefits of these batteries, and therefore, They increased their competitiveness.

This scenario allowed China to use patents derived from LFP technology in their free domestic market, which helped him gain experience and develop his production capacity. In fact, Catl, Byd and other Chinese manufacturers Batteries have put in recent years huge factories that have allowed them to develop the economy of scale producing a huge volume of batteries with an extremely competitive unit cost. In addition, China is the largest electric car market on the planet, so its internal demand is able to sustain its battery industry alone.

However, beyond the support of the government and the ability with which China has managed to climb its production capacity, it is important that we do not overlook another factor: this country has access to raw materials in very advantageous conditions. The new lithium and iron mines under your control have allowed you to have great reservations of these chemical elements at a low price.

In addition, its supply chain allows you to control, in addition to the extraction of raw materials, your refining and the assembly of all the components of the batteries, thus reducing the presence of intermediaries and the margins of external suppliers. From one thing we can be sure: at the current situation it is very unlikely that other countries will snatch market share to China in this industry.

More information | Asianometry

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