Riding the Wave: Chinese Lithium Battery Industry Accelerates Global Expansion

Fueled by robust domestic foundations and surging global demand, China's lithium battery industry is rapidly expanding its international footprint, marking a strategic shift in the global clean energy landscape.

Strong Domestic Base Powers Global Reach

As the world's largest producer, China boasts a complete, mature lithium battery supply chain. Industry data reveals the scale of its global influence: the country supplies approximately 70% of the world's battery materials and 60% of its power batteries. This industrial strength is the cornerstone of its accelerating exports, with lithium-ion battery export value skyrocketing from $15.94 billion in 2020 to $61.12 billion in 2024.

Dual Engines of Demand: EVs and Energy Storage

The overseas push is primarily driven by two high-growth sectors:

Electric Vehicles (EVs): From January to October 2025, China exported 228.1 GWh of power and other batteries, a substantial year-on-year increase of 43.9%.

Energy Storage: The momentum is even more pronounced here. Chinese companies secured overseas energy storage orders totaling 269.05 GWh from early 2025 to November—a figure that is 3.3 times the total new global installations for all of 2024.

A Strategic Path to Sustainable Growth

Industry leaders and analysts highlight that "going global" has evolved from an option to a core strategy for sustainable development. Facing intense domestic competition and price pressures, Chinese enterprises are proactively seeking growth in international markets.

This expansion offers benefits beyond mere sales volume. It enables companies to achieve greater economies of scale, which helps amortize high R&D costs and fosters a virtuous cycle of technological advancement and cost optimization. Furthermore, it integrates the entire Chinese supply chain deeper into global networks, allowing upstream and downstream players to share in the dividends of globalization.

The strategic direction is clear. As stated by Minister Li Leqeng of the Ministry of Industry and Information Technology (MIIT), China encourages its leading enterprises in sectors like lithium batteries to "go global," supporting worldwide sustainable development through its manufacturing prowess.