More than seven out of every ten batteries powering the world’s electric and plug-in hybrid vehicles now come from Chinese manufacturers. SNE Research put Chinese battery makers’ global market share at 72.4% in the first half of 2026, up 1.5 percentage points from the same period in 2025. Their position draws on more than cell assembly: an International Energy Agency assessment reported that China was the largest refiner of 19 of 20 major energy-related minerals, with an average refining-market share of about 70%. China also accounted for roughly 85% of global cathode-active-material production, more than 90% of anode-active-material production and over 80% of battery-cell production in the period cited. This concentration across the supply chain helps Chinese producers secure supplies and compete on cost.
CATL remained the market leader, delivering 242.7 GWh of battery capacity between January and June 2026, a 25.3% year-on-year increase. Its global share reached 39.9%, up 1.7 percentage points from a year earlier. BYD supplied 87.7 GWh, a 1.6% increase, and ranked second. Together, the two companies accounted for 54.3% of the global market in the first half, down half a percentage point from the previous year but still a dominant position. SNE Research data for January through August put total global EV-battery installations at 844.2 GWh, up 19.7% year on year. CATL’s installations reached 333.0 GWh, giving it a 39.4% share, while BYD recorded 127.9 GWh and a 15.1% share. The later-period figures show both companies continued to grow, with their combined share at about 54.5% through August.
Other Chinese manufacturers, including CALB, Gotion, EVE, Svolt and Sunwoda, have also contributed to the country’s position, collectively delivering 440.7 GWh in the first-half figures, a 22.5% year-on-year increase. Non-Chinese competitors have grown more slowly. LG Energy Solution, the leading South Korean player, supplied 52.6 GWh, up 8.4%, but its market share slipped to 8.6% as Chinese rivals expanded and some of its basic clients saw uneven sales. SNE Research data also put the combined share of South Korea’s three leading battery suppliers at 26.8% in markets outside China during January through August 2026, down 11.1 percentage points. Rising supply has not prevented relative share losses as the market expands.
Scale is only part of the competitive picture. Chinese companies have built an integrated supply chain from mineral processing through battery materials and cell production, while also expanding overseas through investment and joint ventures. CATL’s Indonesian expansion, for example, is designed to connect nickel mining and refining with battery materials, cell production and used-battery recycling. BYD also makes batteries alongside electric-lead components such as motors, power-control units and power semiconductors, reducing its reliance on outside suppliers. CATL’s growth is increasingly international: its share of installed battery capacity outside China rose from 29.0% to 33.7% in the cited comparison. Strong installations, but, do not eliminate margin pressure as battery makers compete on price and automakers seek lower costs.
Trade policy is also shaping where companies build. Under European Union Regulation (EU) 2024/2754, definitive countervailing duties on fully electric passenger cars made in China took effect on October 30, 2024, for five years. The additional rates are 17.0% for BYD, 18.8% for Geely and 35.3% for SAIC, on top of the EU’s standard 10% passenger-car tariff. The measures do not cover every electrified vehicle category, including plug-in hybrids. In response to the wider investment and trade environment, CATL has planned a battery plant in Debrecen, Hungary, with an announced investment of €7.34 billion and planned annual capacity of 100 GWh. Local production can bring manufacturing closer to European automakers and consumers while reducing exposure to cross-border costs.
Future competition will hinge on production scale and efficiency at regional manufacturing sites, alongside customer diversification and products adapted to local requirements. Chinese battery makers’ rapid growth is already prompting automakers and suppliers elsewhere to reassess sourcing strategies and regional investment plans. Policy and consumer adaptation are also shaping the industry, including the debate in the UK over streamlined manual driving licenses for automatic drivers.
Information from elespanol motor, China’s position in battery manufacturing reflects government policy alongside sustained investment in research, infrastructure and international expansion. With production and supply-chain capacity extending beyond China’s borders, Chinese companies are setting the pace in the global battery race and pressing competitors to respond on cost, scale and regional presence.
