Cui Dongshu: Production of power batteries and other batteries in November increased by 53% year-on-year. The prosperity of power battery installations has reached its highest level this year.

In November, the trend of power batteries in November was relatively weak, with both exports and domestic sales performing below average. The anticipated high growth in new energy vehicle installations at the end of the year did not materialize, leading to a poor actual state. Despite this, the installation rate still saw a significant increase, reflecting that the demand for energy storage did not exceed expectations. The installation of vehicles in December is expected to be lower, with weak demand for new energy passenger vehicles. The demand for batteries for heavy-duty vehicles is extremely dependent on high subsidies, but changes in production materials are related to subsidy and tax policies. It is expected that the installation of pure electric heavy-duty vehicles will see a significant decrease in early next year. In November, China's total production of power and other batteries was 176GWh, a year-on-year increase of 53%. From January to November, China's total production of power and other batteries was 1469GWh, a cumulative year-on-year increase of 46%. In November 2025, the proportion of batteries in the production of power batteries increased by 53%, with a 50% installation rate for ternary batteries and a 54% installation rate for lithium iron phosphate batteries. The installation boom of power batteries in November 2025 reached a high point for the year. According to the quantity of qualified certificate batteries, the production of qualified new energy vehicles in China was 1.72 million units in November 2025, an increase of 19% year-on-year. From January to November 2025, the total production of domestic qualified certificates for new energy vehicles was 12.92 million units, showing a strong year-on-year increase of 18%, with 7.72 million pure electric passenger vehicles, an increase of 30%; 4.5 million plug-in hybrid passenger vehicles, an increase of 1%; and 630,000 pure electric special vehicles and trucks, showing a significant increase in heavy-duty vehicles. The competition in the battery industry is currently dominated by Contemporary Amperex Technology and BYD Company Limited. NINGDE and BYD Company Limited are expected to maintain a 65% market share by 2025, leaving a space of over 30% for other companies. This year, Gotion High-tech, Eve Energy Co., Ltd., Geely Yaoning, Chinen New Energy, and others have shown strong performances. Due to BYD Company Limited's comprehensive transformation to lithium iron phosphate batteries, the advantages of ternary batteries from Contemporary Amperex Technology, CALB, LG, and CATL have become more pronounced. The proportion of power batteries in vehicles In November, China's total production of power and other batteries was 176GWh, a year-on-year increase of 53%. From January to November, China's total production of power and other batteries was 1469GWh, a cumulative year-on-year increase of 46%. Currently, the proportion of batteries in the production of power batteries is continuously decreasing. In 2021, the installation rate of power batteries in vehicle production reached 70%; in 2022, it was 54%; in 2023, it was 50%; in 2024, the proportion increased to 50%; in November 2025, the proportion remained at 46%, with a ternary battery installation rate of 41% and a lithium iron phosphate installation rate of 47%. In November 2025, the proportion of batteries in the production of power batteries increased by 53%, with a ternary battery installation rate of 50% and a lithium iron phosphate installation rate of 54%. The installation boom of power batteries reached a high point for the year. With the development of industries such as energy storage, especially the world energy crisis caused by the Russo-Ukrainian conflict, the demand for batteries in industries such as energy storage is growing rapidly, leading to a significant decrease in the proportion of batteries in vehicles. This is mainly due to the market downturn at the beginning of the year, which leads to a decrease in the proportion. Both power batteries and energy storage batteries are facing significant pressure from overproduction and excess inventory. In 2021 and 2022, the growth rate of power batteries was lower than that of the entire vehicle. In 2023 and 2024, the installation rate of power batteries was low, with battery production keeping pace with installation growth. In 2025, there was a high production of batteries, with a slow start to installation, but the installation rate in November remained at a high level. The ternary proportion of power batteries installed in domestic vehicle models continued to decrease. The demand for power batteries in vehicles is growing at a strong pace. In 2019, the demand increased by 10%; in 2020, the installation of power batteries in domestic vehicle models was 64GWh, with a demand increase of 2%; in 2021, the installation was 155GWh, with a demand increase of 143%; in 2022, the installation was 295GWh, with a demand increase of 91%; in 2023, the installation was 388GWh, with a demand increase of 32%; in 2024, the installation of lithium batteries was 548GWh, a year-on-year increase of 41%. In November 2025, the installation of lithium batteries reached 672GWh, a year-on-year increase of 42%. The demand for passenger car batteries continues to grow strongly, with a 34% increase in the demand for batteries for pure electric passenger cars in 2025, and a 19% increase in the demand for batteries for plug-in hybrid passenger cars, showing a sustained strong growth. The demand for batteries for pure electric trucks also saw a significant increase, reaching 155%. In November 2025, the installation of batteries in vehicles increased by 39%, with strong growth in commercial vehicles, especially a sharp increase of 172% in the installation of pure electric trucks in November, while the installation of plug-in hybrid trucks increased by 79%. From the perspective of the proportion of batteries in vehicles, the demand structure of power batteries has been changing rapidly in recent years. In 2020, pure electric passenger cars were still in the first place, pure electric buses were in second place, and pure electric special vehicles were in third place, while plug-in hybrid passenger cars were in fourth place. By 2025, pure electric passenger cars still maintained the first place, plug-in hybrid passenger cars rose to second place, pure electric trucks rose to third place, pure electric buses rose to fourth place, and plug-in special vehicles fell to fifth place. In recent years, the market for pure electric buses has seen a sharp decline, while the usage of batteries in pure electric special vehicles has been increasing rapidly. Currently, the usage of batteries in pure electric passenger cars and plug-in hybrid passenger cars has decreased significantly, while the usage of batteries in heavy-duty trucks has increased substantially, driven by the advantage of high subsidies for heavy-duty vehicles brought about by new energy subsidies. Vehicle production certificates According to the calculation of the quantity of qualified certificate batteries, the domestic market installed 11.68 million vehicles in 2024, showing a strong year-on-year increase of 42%, with 6.35 million pure electric passenger cars, a 21% year-on-year increase; 4.71 million plug-in hybrid passenger cars, an 85% year-on-year increase; and 540,000 pure electric special vehicles, a 45% year-on-year increase. These production figures are relatively good. In November 2025, the production of qualified new energy vehicle products was 1.72 million units, a 19% year-on-year increase. From January to November 2025, the domestic production of qualified certificates for new energy vehicles was 12.92 million units, a strong year-on-year increase of 18%, with 7.72 million pure electric passenger cars, a 30% increase; 4.5 million plug-in hybrid passenger cars, a 1% increase; and 630,000 pure electric special vehicles and trucks, showing strong production figures. The adequacy of supporting battery companies is far from being fully competitive In recent years, there has been no significant change in the competitive landscape of the battery market. In November 2025, there were 36 supporting battery companies, which is a normal low level. Due to the relatively slow technological progress in the power battery market and the significant characteristics of scale growth, battery companies have obtained strong characteristics of production and installation quantity growth. The existing pattern of batteries has not changed significantly, with those investing more able to gain a larger market share. This has led to a continued strong performance in the expansion of leading battery companies, while medium and small-sized battery companies also have opportunities for growth through technological or other breakthroughs. Therefore, the overall battery landscape can be said to be relatively stable in the high-speed growth phase. However, there are significant opportunities for changes in the battery industry in the future. The trend of whole vehicle companies producing batteries or collaborating with related companies to produce batteries jointly is becoming more evident, and battery companies will gradually form core supporting products for whole vehicles. Differentiation of battery capacity for various vehicle models With the decline in battery prices, the range of electric vehicle continues to increase. There is a strong demand for high-end electric vehicles in the current electric vehicle market, especially for small and micro electric vehicles upgrading from "old scooters" and facing significant policy pressures, leading to a significant trend towards high-end electric vehicles. In the second half of 2024, with policies such as trade-in incentives driving the market, the small car market rebounded, and micro electric vehicles became popular, leading to a decrease in the installation of batteries. With the cost advantage of electric vehicles becoming evident, the structure of pure electric special vehicles is shifting towards heavy-duty trucks, leading to a surge in battery capacity. From the perspective of the supply chain, whole vehicle companies will become increasingly powerful in the future, with stronger control over battery companies and the upstream industry chain, and an increasing control over the branding and marketing capabilities downstream. Under the new energy system, the characteristic of "the whole vehicle is king" will continue to be reflected. High energy density batteries need to decrease The main energy density range of power batteries for pure electric vehicles is currently between 125 and 160. In the fourth quarter of 2025, the proportion of batteries in the 140 to 160 range increased to 38%, an increase of 14 percentage points compared to the previous period. The proportion of vehicles with a battery energy density of 160 and above in the fourth quarter of 2025 was 10%, a significant decrease from 13% in 2024. This is mainly due to the decrease in energy density brought about by the substitution of ternary batteries for lithium iron phosphate batteries. The proportion of products with an energy density below 125 in 2025 dropped to 0%. Battery company landscape The competition landscape of battery companies is dominated by Contemporary Amperex Technology (03750) and BYD Company Limited (01211). The proportion of Contemporary Amperex Technology decreased to 43.5% in the fourth quarter of 2025, while the proportion of BYD Company Limited increased from 15% in 2020 to 26.9% in 2023, and then decreased to 21.5% in the fourth quarter of this year. The proportion of other battery companies also showed a noticeable differentiation trend. The battery companies have slowed down their gathering effect, with the top two companies accounting for 72% in 2022, and NINGDE and BYD Company Limited maintained a 65% market share by 2025, leaving a space of over 30% for other companies. This year, Gotion High-Tech, Eve Energy Co., Ltd., Geely Yaoning, Chinen New Energy, among others, have shown strong performances. The product differentiation advantage of lithium iron phosphate batteries is evident. BYD Company Limited is relatively excellent, but was in an adjustment period at the beginning of the year. The proportion of lithium iron phosphate batteries from Contemporary Amperex Technology surpassed BYD Company Limited as early as 2024. BYD Company Limited continued to decline in 2025, with a decrease of 11.2 percentage points from the same period in 2022. Eve Energy Co., Ltd. and CALB have shown strong performances. Sunwoda Electronic, REPT BATTERO, CATL Energy, and Jidi New Energy have shown significant improvements. Due to BYD Company Limited's comprehensive transformation to lithium iron phosphate batteries, the advantages of ternary batteries from Contemporary Amperex Technology, CALB, LG, and CATL have become more pronounced, while recent performances of giants such as Eve Energy Co., Ltd. have been good. LG New Energy's statistics have improved due to an increase in the proportion of domestic sales from Tesla. This article is sourced from the WeChat public account "Cui Dongshu", edited by GMTEight: Chen Qiuda