On November 19, 2025, the latest report released by SNE Research, a global power battery industry research institution, shows that the global power battery installed capacity in the third quarter of 2025 reached 158.6 GWh, a year-on-year increase of 18.2%. Among them, Chinese enterprises continue to lead with a 72.3% market share, with CATL and BYD ranking the top two with 38.1% and 20.5% market shares respectively. Japanese and South Korean enterprises are accelerating their catch-up through technological breakthroughs in solid-state batteries and cobalt-free batteries; the market shares of Panasonic and Samsung SDI increased by 1.2 and 0.8 percentage points month-on-month respectively. The global power battery industry is entering a new stage characterized by both “scale competition” and “technological game”.
The leading advantage of Chinese enterprises stems from their complete industrial chain layout and cost control capabilities. The second-phase project of CATL’s Thuringia factory in Germany was officially put into production in the third quarter. This factory focuses on the production of lithium iron phosphate batteries, with its annual production capacity increased to 30 GWh, providing close-range supply chain support for local European automakers. BYD has achieved rapid penetration in the Southeast Asian and Latin American markets through the combined strategy of “Blade Battery + DM-i hybrid system”. Its overseas power battery installed capacity in the third quarter increased by 120% year-on-year. Among them, the customized batteries supplied by its Thai factory for Toyota’s first pure electric SUV bZ4X have been delivered in batches. In addition, second-tier enterprises such as Gotion High-Tech and China Innovation Aviation are accelerating their overseas expansion, and their factory construction plans in Hungary and Portugal have been successively implemented, further consolidating the global advantages of China’s industrial chain.
Japanese and South Korean enterprises are seeking to overtake by leveraging technological innovation as a breakthrough. Panasonic Energy announced that the energy density of its new-generation 4680 cylindrical battery has exceeded 1000 Wh/L, an increase of 40% compared with existing products. This battery will be first equipped on Tesla’s 2026 Model 3, and the mass production line at its Osaka factory in Japan has entered the commissioning stage. Samsung SDI focuses on the R&D of cobalt-free batteries. Its battery products using nickel-manganese-based cathode materials have passed the reliability test of Hyundai Motor and are planned to be commercially applied in 2026. This technology can reduce battery costs by 25% while improving safety. The solid-state battery prototype jointly developed by LG Energy Solution and Honda has an energy density of 950 Wh/L, and is expected to enter the trial production stage in 2027. Solid-state batteries are regarded by the industry as a core direction to break through the technical bottlenecks of existing lithium-ion batteries.
Structural changes in market demand are driving the shift of industrial competition focus. The European market’s demand for high-energy-density batteries continues to rise. To adapt to long-range models, automakers such as BMW and Volkswagen have increased their procurement of ternary lithium batteries, which provides market space for Panasonic and LG Energy Solution. In emerging markets such as China and India, however, lithium iron phosphate batteries with higher cost performance are more favored, and related products of BYD and CATL dominate the market. In addition, the new energy policy orientation of various countries also affects industrial layout. The U.S. Inflation Reduction Act requires the localization rate of core battery raw materials to reach 50%, prompting LG Energy Solution and SK On to accelerate their factory construction in the U.S. and establish cooperation with local mineral enterprises to obtain tax incentives.
Fluctuations in raw material prices and supply chain security have become common challenges for the entire industry. In the third quarter, the price of lithium carbonate rose by 12.3% compared with the second quarter, mainly affected by the limited production capacity of lithium extraction from salt lakes in Chile; the price of cobalt fluctuated due to adjustments in the export policy of the Democratic Republic of the Congo. To address raw material risks, CATL has cooperated with Argentine mining companies to develop lithium resources; BYD has expanded its lithium extraction base from salt lakes in Qinghai; Panasonic has improved the recycling rate of metals such as nickel and cobalt through recycling technology, and the material recovery rate of its battery recycling factory has reached 95%. Analysts from SNE Research predict that the global power battery market will maintain an average annual growth rate of about 20% in the next three years. The speed of technological innovation and supply chain stability will become the core moat for enterprises’ competition, and the competitive pattern of enterprises from China, Japan and South Korea will directly affect the development trend of the global new energy vehicle industry.
