Data from the Gao Gong Industrial Institute (GGII), based on new energy vehicle compulsory insurance statistics, reveals that from January to November 2025, the installation volume of lithium iron phosphate (LFP) power batteries in China reached approximately 490 GWh. This represents a significant 55% year-on-year increase, capturing a dominant market share of 78.5%, which is 10 percentage points higher than the same period last year. The current share is merely 2.5 percentage points away from the historical peak of 81% achieved in 2014. GGII analysis suggests that the domestic market share for LFP power battery installations is poised to set a new record. This potential is bolstered by the technology's widely accepted and recognized significant advantages in safety, cost-effectiveness, service life, and resource sustainability.

The current surge in LFP battery installation share is fundamentally different from the drivers in 2014. Present growth is primarily market-driven, evidenced by a substantial increase in its penetration within the new energy passenger vehicle segment. In contrast, the 2014 peak was largely policy-driven, marked by a sharp rise in adoption within the new energy bus sector. Whether the LFP power battery installation share can reach a new high ultimately depends on the strength of future market-driven momentum.

An examination of new vehicle announcements for the first eleven months of this year shows that the proportion of models equipped with LFP batteries has consistently fluctuated between 90% and 96%. Notably, in the second half of the year, this figure climbed from 92% to 94.5%, indicating that automakers are increasingly planning their model lineups around LFP technology. Looking at the number of new energy passenger car models already on the market that use LFP batteries, the count has grown significantly from 213 models over the past three years to 536 models in the first eleven months of this year. With production capacity ramping up for popular models like the Geely Xingyuan, Xiaomi SU7, and Xpeng MONA M03, accelerated deliveries are expected to further boost the installation share of LFP power batteries.

Regarding the competitive landscape, the top 10 companies in China's LFP power battery installation volume from January to November 2025 collectively held a 95.3% market share. Among them, CATL, EVE Energy, Sunwoda, Zenergy, and Quzhou G-Power have demonstrated a steady growth trend for three consecutive years. As these battery manufacturers continue to expand their presence in the new energy heavy-duty truck sector, there remains additional room for growth in their LFP power battery installation share.