Not Just EVs: China Leads the World in Battery Production and Technology for all Vehicles
If you have been following the news, you would know that BYD has overtaken Tesla in the electric vehicle (EVs) market. You would also probably have heard how other Chinese EV brands such as Nio and XPeng have made significant inroads in different parts of the world, including in Singapore and Southeast Asia.
These stories tend to focus on passenger cars from sleek sedans to luxury SUVs and self-driving vehicles. What often goes unnoticed is the broader energy storage and battery landscape, where China is also a dominant leader.
Beyond EVs, China is at the forefront of battery technology for a wide range of applications—powering logistics, industrial machinery, forklifts, mining trucks, buses, port equipment, and more. This comprehensive leadership in battery manufacturing and innovation signals a deeper shift in the global energy and industrial infrastructure.
At the Heart of Every EV…
If electric vehicles are the future, batteries are the core that make it possible. The battery is arguably the most critical component of an EV - accounting for 40% of the vehicle’s total value.
No country has done more to shape that core than China, which produces over three-quarters of the world’s EV batteries. On average, Chinese-made batteries cost 20-30% less than those in Europe and North America.
One major reason for this cost advantage is China’s early and long-term bet on lithium iron phosphate (LFP) batteries, a chemistry that’s generally cheaper, safer, and longer-lasting, though lower in energy density compared to nickel manganese cobalt (NMC) batteries, which dominate in the West. While NMC batteries have typically been used for longer-range and performance-focused EVs, Chinese manufacturers have steadily refined LFP technology through years of R&D.
Today, LFP batteries power nearly half of all EVs sold globally - a remarkable rise, with market share more than tripling over the past five years.
China dominates the leaderboard: six of the world’s top 10 EV battery manufacturers are Chinese, led by CATL (Contemporary Amperex Technology Co. Limited) with a global market share of 37.9%, and BYD at 17.2% in 2024. Together, these two giants supply over half of the world’s EV battery demand, including cells used by automakers like Tesla, Hyundai, VinFast, and dozens of commercial fleet manufacturers across Europe and Asia.
China’s Edge: Electrification of Industrial and Commercial Vehicles
Beyond passenger cars, China has also taken a commanding lead in electrifying industrial and commercial vehicles - the behind-the-scenes workhorses essential to logistics, manufacturing, and infrastructure.
In 2024, China sold over 230,000 zero-emission trucks and buses according to an analysis published by the International Council on Clean Transportation (ICCT). The sales boom, primarily recorded in the last quarter of 2024, was attributed to a strong macroeconomic stimulus package released by the Chinese government in September.
Battery-electric technology dominated the zero-emission segment, making up 13% of medium truck sales and 14% of heavy truck sales. Meanwhile, electric city buses have already achieved full market penetration. Since 2023, nearly 100% of new city buses sold in China have been electric.
China is also pushing electrification into some of the most demanding industrial environments - construction sites, mining pits, and port terminals.
In 2024, Chinese manufacturers produced over two-thirds of all electric wheel loaders globally, and the segment is expanding into heavier equipment. Leading OEMs (Original Equipment manufacturers) like XCMG, SANY, and XEMC have introduced battery-electric excavators, dump trucks, and mining haulers, some equipped with batteries as large as 700 kWh.
One headline-making example: Huaneng Group deployed the world’s largest fleet of 100 driverless electric mining trucks in Inner Mongolia’s Yimin open-pit mine. Huaneng claims each truck can carry a load of 90 metric tons and operate continually in extreme cold of –40°C, while delivering 120% of the comprehensive operational efficiency of a manually-driven truck.
The Battery Builders Driving the Transition
As demand for industrial-grade and commercial EVs grows, China’s battery makers are quietly supplying the fuel behind the EV boom.
This however didn’t happen by chance. Beijing made deliberate choices, took deliberate actions to dominate battery materials by backing domestic champions like CATL and BYD. Indeed, China aligned industrial electrification with urban planning, logistics reform, and green development goals - creating the perfect breeding ground for innovation and scale.
We can’t talk about China’s battery manufacturers without talking about CATL, the company that has become almost synonymous with the country’s battery dominance. A global leader in the sector, CATL produces more than a third of all electric vehicle batteries sold worldwide.
From a relatively unknown startup in 2011 to the world’s largest EV battery maker today, CATL now supplies lithium-ion batteries to a broad range of global automakers. Many popular EV brands have CATL under their hoods, and its batteries are powering a growing number of commercial and industrial EV fleets.
Just this week, CATL made headlines again with a blockbuster debut on the Hong Kong Stock Exchange, raising more than $4.6 billion in what is currently the world’s largest IPO of 2025. The listing, in addition to its existing Shenzhen listing, gives CATL fresh capital to fuel overseas expansion, including a $7.6 billion battery plant in Hungary to serve clients across Europe.
One of its most transformative moves has been the battery swapping technology. Instead of plugging in and waiting, a vehicle simply pulls into a station, has its batteries swapped out, and is back on the road in minutes. This approach solves one of the biggest pain points in commercial and industrial electrification: downtime. For logistics fleets, buses, and heavy trucks, every hour off the road costs money. Battery swapping dramatically increases fleet utilization, while also lowering long-term energy and maintenance costs.
The company launched its Qiji Energy battery swap solution for trucks in 2023 and is now looking to roll out a nationwide network. These stations are built to handle large trucks, and CATL’s batteries are designed to last for years under heavy use. Drivers can use an app to find stations, book a swap, and plan their routes.
CATL says this system can save truck operators up to 60,000 yuan (US$8,300) a year, while keeping vehicles on the road longer.
In May 2025, CATL’s chairman announced plans to electrify half of China’s heavy trucks by 2028, and it aims to establish a battery swap network covering 80% of major freight routes in China by 2030. And it’s not just trucks. In late 2024, CATL partnered with SAIC-GM-Wuling to expand swapping to light delivery vehicles, with thousands more stations planned across the country.
Forklifts & Industrial Vehicles: Built for Duty Cycles
Forklifts, automated guided vehicles (AGV), and factory vehicles don’t care about long range, they need reliability. These machines run tight loops, often indoors, and deal with heat, cold, and constant stop-start use. That’s why LFP batteries, which are known for safety, durability, and low cost, are the go-to.
Ganfeng Lithium supplies the materials that go into these batteries. Through its subsidiary Jiangsu Ganfeng, it also builds low-voltage LFP systems (12V–96V) designed to replace lead-acid batteries in forklifts and similar vehicles. With smart battery management systems and long life spans, these batteries are built to last 8-10 years versus 3-5 years in the case of lead batteries.
EVE Energy partners with industrial OEMs to design modular battery packs, both LFP and NCM, tailored for high-usage environments. Think: fast swapping, long cycle life, and tough conditions.
REPT Battero, backed by Tsingshan Group, develops heavy-duty LFP battery packs made for warehouses and factories. Its focus: thermal safety and endurance under extreme use.
Buses, Vans & Commercial Trucks: Scaling the Transition
China's urban transit and freight sectors are rapidly adopting electric solutions, with a significant shift towards battery-electric buses and commercial vehicles. These applications demand batteries with large capacities, fast charging capabilities, and long operational lifespans.
REPT Battero is a major player, supplying 280Ah LFP battery packs for electric buses that offer extended range, quick turnaround times, and robust safety features.
EVE Energy is another key player. In May 2024, at its inaugural Commercial Vehicle Battery Tech Day and Open Source Battery Products Launch in Huizhou, China, EVE unveiled eight new Open Source Battery products designed for various commercial vehicles, including vans, trucks, buses, and construction equipment.
Dr. James Jiang, Vice President of EVE Energy and President of EVE Battery System Research Institute, commented:
"Amid rapid technological progress, EVE Energy is upgrading Open Source Battery for all commercial scenarios, empowering new energy commercial vehicles in four key areas: faster charging, lighter weight, longer life, and improved operation. We aim to contribute to the development of commercial transportation, and this mission also reflects EVE Energy's original intention to develop Open Source Battery."
EVE's partnerships with major heavy vehicle and construction equipment makers like SANY, Dongfeng, and Foton underscore its growing influence in China's industrial EV ecosystem.
One other company worth mentioning is Ganfeng Lithium, which plays a foundational role in powering the industry. As one of the world’s largest lithium producers, it supplies high-quality lithium carbonate, lithium hydroxide, and LFP cathode materials to major battery manufacturers globally.
Looking ahead
China has a massive lead in producing the batteries that will power not just EVs but a host of industrial machinery and vehicles in the future.
But there continue to be many challenges, including the race to secure critical minerals from around the world and continuing US efforts to stymie China’s technological advancement by cutting off supplies and markets.
And even as China leads in scale, the next chapter needs to be cleaner production, better recycling of existing batteries, and breakthroughs like solid-state batteries, which use solid materials instead of liquid electrolytes, making them safer, longer-lasting, and able to store more energy without taking up more room.
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Great read!