Which countries are leading the global battery industry?

Despite China’s current market dominance, the expansion of battery production is also moving fast elsewhere. Korea and Japan are already major players in the global battery industry, home to key battery makers and specialised suppliers with strong expertise in NMC batteries.

How is the global battery market advancing?

The global battery market is advancing rapidly as demand rises sharply and prices continue to decline. In 2024, as electric car sales rose by 25% to 17 million, annual battery demand surpassed 1 terawatt-hour (TWh) – a historic milestone.

Which country is the largest battery manufacturer in the world?

Even so, China is expected to remain the largest battery manufacturer by some distance in the medium term. Korea and Japan are already major players in the global battery industry, with major manufacturers and suppliers specializing primarily in NMC batteries.

Why are Korean batteries losing a quarter of Europe's market share?

Over the past two years, Korean manufacturers – traditionally the largest battery manufacturers in Europe – have lost almost one quarter of their market share in the European Union, which dropped from nearly 80% in 2022 to 60% in 2024 in part due to the increased success of LFP batteries made in China.

Will China remain the largest battery manufacturer?

Amid fierce competition and declining margins, the number of companies producing batteries in China is likely to decline, and certain producers will gain greater influence and pricing power. Even so, China is expected to remain the largest battery manufacturer by some distance in the medium term.

How has domestic competition shaped the Chinese battery market?

Fierce domestic competition has shaped the Chinese battery market, which is home to almost 100 producers. To maintain or gain market share, these firms have been cutting their profit margins to sell batteries at lower prices. However, price declines could slow in the near future.