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Not surprisingly, most of the EV batteries produced last year came from China. according to Nikkei AsiaIt is expected that Chinese electric vehicle battery manufacturers will account for about 70% of the global market share by 2025, a significant increase from less than 50% in 2021.
China’s Contemporary Amperex Technology Co Ltd (CATL) – which supplies batteries to Ford electric vehicles such as the Mustang Mach-E – remains the industry leader and reported a record 2025 net profit of 72.2 billion yuan (about $10.4 billion at current exchange rates), up 42% from the previous year. Chinese companies also dominate the rankings, accounting for six of the world’s top ten battery manufacturers last year in terms of installed capacity.
Notably, Chinese battery makers are less affected by the U.S. EV slowdown, largely because of their limited presence in the market, while Korean companies such as LG Energy Solution and SK On have been more affected.
The economic slowdown has been linked to a shift in policy support, forcing South Korean battery makers to make adjustments. SK On, a major supplier of electric vehicles such as Hyundai Motor Group’s Ioniq 5, has laid off 958 workers at its Georgia plant. Meanwhile, LG Energy Solution is also restructuring as its joint venture with Honda Motor Co. in Ohio sells a plant and related assets to Honda’s U.S. subsidiary.
On the other hand, Chinese battery manufacturers continue to expand outside the United States, including Europe, where BYD is expanding its manufacturing footprint in Hungary and Türkiye. BYD, which last year ranked second behind CATL in global market share, continues to produce batteries for its own cars while also increasing supplies to other automakers including Stellantis and Xiaomi.
Although Chinese companies reported strong results in 2025, the outlook for this year appears to be more mixed. The report pointed out that after government subsidy adjustments, new sales of electric vehicles fell by 28% year-on-year between January and February 2026. Such a shift could drive out weaker players and favor more competitive and profitable companies, although it could also create risks for Chinese suppliers.
If China continues to extend its lead, it could effectively set a global price floor for electric vehicle batteries. Unless U.S. and allied automakers can scale up quickly enough, they risk higher battery costs that will make it harder to produce affordable electric vehicles. That’s important in the United States, where affordable options are few and far between, with the Chevrolet Bolt EV and Nissan Leaf still among the few mainstream models hovering in the $30,000 range.
