China leads EV batteries on two different measures: it produced more than 80% of the world’s batteries in 2025, and Chinese-headquartered producers supplied almost 75% of batteries deployed in electric cars worldwide that year. The first measures where batteries were made; the second measures who supplied them. Together with China’s large electric-car industry and its strength in LFP batteries, the figures show a broad industrial position—not a story explained by one company or chemistry.
What does “China dominates EV batteries” mean?
The International Energy Agency (IEA) reports that China accounted for more than 80% of global battery production in 2025. It separately estimates that Chinese producers accounted for almost 75% of global electric-car battery deployment that year. Those figures describe different things: factory location versus supplier nationality.
| Measure | Figure | What it counts |
|---|---|---|
| Battery production by location | China produced more than 80% of the global total in 2025, according to the IEA’s 2026 analysis. | Batteries made in factories located in China, regardless of the producer’s headquarters. |
| Electric-car battery deployment by producer headquarters | Chinese producers supplied almost 75% of the global total in 2025, according to the IEA’s 2026 analysis. | Batteries deployed in electric cars worldwide from producers headquartered in China, including production outside China. |
Neither percentage should be substituted for the other. A battery made in China is not necessarily supplied by a Chinese-headquartered company, and a Chinese producer can supply batteries made at an overseas factory. The figures are also not interchangeable with manufacturing capacity, company sales or announced factory projects.
Why does China dominate EV battery production?
The evidence points to an interconnected industrial system: large-scale battery manufacturing sits alongside a huge market for electric cars, major vehicle production and a strong position in LFP batteries and materials. These facts help explain why China’s role extends beyond any single cell maker. They do not, on their own, establish how much each factor caused China’s lead.
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A large vehicle industry and home market
China produced 12.4 million electric cars in 2024, out of 17.3 million worldwide, according to the IEA’s Global EV Outlook 2025. Its share exceeded 70% of global electric-car production. The IEA described China as “the world’s electric car manufacturing hub,” accounting for more than 70% of global production that year.
Vehicle and battery manufacturing at this scale are part of the same industrial landscape, but the vehicle-output figure is context, not proof of a specific causal effect on battery production. A separate IEA observation says Chinese automakers made more than 80% of domestic EV production in 2024, up from roughly two-thirds in 2021. That is a measure of vehicle-maker share—not battery market share.
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LFP is an important part of the mix, not a complete explanation
Lithium iron phosphate (LFP) batteries matter because they can reduce production costs. The IEA reports that LFP production remains concentrated mainly in China, where Chinese companies lead in LFP batteries and materials. This helps describe the country’s industrial position, but it would be inaccurate to credit LFP alone for China’s overall battery dominance.
The available figures do not provide a like-for-like comparison of battery chemistries across regions on cost and energy density. They support LFP’s cost relevance and geographic concentration, not a full technical ranking against nickel-based chemistries.
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How did China become the leader in electric vehicle batteries?
The figures show the outcome of a broad industrial shift, but they do not establish a complete year-by-year history of battery-market share from 2015 to 2025. The IEA’s comparable snapshots establish China’s scale in 2024–2025; they do not quantify the separate contributions of policy, domestic demand, raw-material processing, manufacturing learning, company strategy or chemistry choices. A precise ten-year percentage-point increase—or a ranked list of causes—would go beyond what these figures establish.
The IEA’s vehicle-maker comparison offers a narrower historical point: Chinese OEMs’ share of domestic EV production rose from roughly two-thirds in 2021 to more than 80% in 2024. Because this tracks vehicle production rather than batteries, it can illustrate change in the domestic auto industry but cannot serve as a battery-market time series.
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What share of EV batteries are made in China?
For 2025, the answer by factory location is more than 80% of global battery production, according to the IEA’s 2026 analysis. That is the relevant figure if “made in China” means manufactured in Chinese factories. If the question instead means the global share supplied by Chinese-headquartered companies, the IEA’s 2025 deployment measure is almost 75%.
Use the production share to discuss geography and the deployment share to discuss supplier nationality. Neither measures the share of global factory capacity, and the deployment statistic concerns electric-car batteries rather than every battery application.
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Is CATL bigger than BYD in EV batteries?
CATL reports that its lithium-ion battery sales reached 661 GWh in 2025. In its March 10, 2026 annual-report release, CATL also reported a 39.2% global power-battery market share, attributing that share figure to SNE Research. These are company-reported figures, not independently verified by the IEA figures discussed above.
Those CATL numbers do not settle a CATL-versus-BYD comparison. The available data here do not provide comparable figures for both companies using the same metric, year and definition. Sales, installed deployment and power-battery market share are distinct measures, so a company’s reported sales figure should not be treated as a direct ranking against another firm’s share statistic.
How far does China’s battery industry extend beyond its borders?
Chinese battery producers are building manufacturing capacity overseas as well as supplying global markets. The IEA’s Global EV Outlook 2025 identifies the European Union as the largest single destination for their overseas manufacturing plans. It projects that Chinese producers’ share of EU battery manufacturing capacity could rise from less than 10% in 2024 to more than 30% by 2030.
That 2030 figure is a projection, not a current outcome. It is based on projects considered committed as of the end of the first quarter of 2025: installed capacity and projects that had reached a final investment decision and begun construction. Future completion and operation are not guaranteed by a capacity projection.
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What does China’s battery recycling lead measure?
The IEA’s 2026 analysis says China hosts more than 85% of global battery recycling capacity. Capacity describes the ability to process material, not the amount of material actually recovered. The IEA also notes that global recycling capacity currently exceeds available feedstock, so the capacity figure should not be read as a corresponding share of batteries recycled or materials recovered.
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