An analysis of China's battery market: the results of 2024
China continues to lead the world in installed battery capacity. In 2024, the total installed battery capacity reached an impressive 548.4 GWh, a 41.5% increase compared to 2023. The two leading companies—CATL and BYD—account for nearly 80% of the market, strengthening their positions in the global energy storage industry.
Market Breakdown by Battery Type
Three-component batteries (NCM/NCA)-
Total capacity: 139 GWh.
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Share of total volume: 25.3%.
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Growth: 10.2% compared to last year.
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Total capacity: 409 GWh.
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Share of total volume: 74.6%.
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Growth: 56.7% compared to last year.
Record-breaking December
In December 2024, installed battery capacity reached 75.4 GWh, up 57% year-over-year and 12.2% compared to November:
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Three-component batteries: 14.3 GWh (19% of total capacity, a 13.4% year-over-year decrease).
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Lithium iron phosphate batteries: 61 GWh (80.9% of total capacity, a 95.1% increase year-over-year).
Market leaders: CATL and BYD
CATL-
Total capacity: 256.01 GWh in 2024.
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Installed capacity of lithium iron phosphate batteries: 151.63 GWh.
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Market share in Q4 fell to 43%.
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Total capacity: 135.02 GWh in 2024.
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Installed capacity of lithium iron phosphate batteries: 134.84 GWh.
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Market share rose from 15% in 2020 to 25% in 2024 and reached 26% in the fourth quarter.
Trends and Outlook
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Growing popularity of lithium iron phosphate batteries: The share of LFP batteries is increasing due to their reliability, safety, and affordability.
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Declining market share of ternary batteries: Despite this, they remain in demand for the premium electric vehicle segment.
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Further market consolidation: CATL and BYD continue to dominate, but intensifying competition may lead to the emergence of new players.
Conclusion
China is demonstrating impressive growth rates in the battery industry, solidifying its role as a global leader. CATL and BYD continue to set trends, and the shift to lithium iron phosphate technology is becoming the main driver of the market. These trends indicate that China’s battery industry will remain a key player in the global energy transition.
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