China's Battery Output, Installed Volumes Surge in 2024 Amidst NEV Boom

China Battery Production

LFP Batteries Dominate Market Share as CATL, BYD, CALB Lead Installations

China experienced a substantial increase in power and energy storage battery production and installed volumes in 2024, driven by the robust growth of the new energy vehicle (NEV) sector. Data reveals significant year-over-year growth, reinforcing China’s leading role in the global battery market.

LFP Batteries' Continued Market Dominance and Leading Producers

Lithium iron phosphate (LFP) batteries maintained their commanding market position, accounting for 74.4% of total production and 74.6% of installed volumes in 2024, as reported by the China Automotive Battery Innovation Alliance (CABIR). This underscores the strong preference for LFP batteries within China, primarily due to their cost-effectiveness and safety attributes.

The top three battery manufacturers, Contemporary Amperex Technology Co., Ltd. (CATL), BYD, and CALB, collectively installed a substantial 417.5 GWh of battery capacity in 2024. CATL led with 246 GWh, securing 45% of the market share, followed by BYD with 135 GWh (25%) and CALB with 36.5 GWh (7%). These companies are integral to the rapid expansion of China’s NEV industry.

The surge in battery demand is directly attributable to the explosive growth of China’s NEV market. According to data from the China Association of Automobile Manufacturers (CAAM), NEV production reached 12.888 million units in 2024, a 34% increase from the previous year, while sales rose by 36% to 12.866 million units.