On August 16th, Cui Dongshu published an analysis stating that July's power battery market exhibited robust performance, with both export and domestic sales showing excellent results. Pure electric vehicles currently utilize batteries with energy density primarily ranging between 125-160 Wh/kg, with recent slight improvements in high energy density products. The competitive landscape among battery companies has formed a pattern where Contemporary Amperex Technology Co.,Ltd. (300750.SZ) and Byd Company Limited (002594.SZ) maintain relatively strong positions. Contemporary Amperex Technology Co.,Ltd.'s market share in lithium iron phosphate batteries has surpassed Byd Company Limited since 2024, while plug-in hybrid performance remains weak. Industry competition is evolving rapidly. Eve Energy Co.,Ltd. (300014.SZ) and CALB (03931) have shown strong performance. Sunwoda Electronic Co.,Ltd. (300207.SZ), REPT BATTERO (00666), SVOLT Energy, and Jidian New Energy have demonstrated notable improvements. Due to Byd Company Limited's comprehensive transition to lithium iron phosphate batteries, Contemporary Amperex Technology Co.,Ltd., LG, and SVOLT's advantages in ternary batteries have become more pronounced, with Juwan TechRes and Eve Energy Co.,Ltd. performing particularly well recently.

**1. Power Battery Installation Rate**

In July, China's combined production of power and other batteries reached 134 GWh, representing a 42% year-over-year increase. From January to July, cumulative production totaled 831 GWh, up 43% year-over-year. The installation rate of produced power batteries continues to decline: reaching 70% in 2021, 54% in 2022, 50% in 2023, and maintaining 50% in 2024, with ternary batteries at 50% and lithium iron phosphate batteries at 50%. By 2025, the installation rate is projected to decrease to 43%, with ternary batteries at 38% and lithium iron phosphate batteries at 44%. With the development of energy storage and other industries, particularly driven by energy crises resulting from the Russia-Ukraine conflict, battery demand for energy storage applications has grown rapidly, leading to a significant decrease in the proportion of batteries used for vehicle installation. However, market declines early in the year also contributed to this decreased proportion. Both power batteries and energy storage batteries face challenges from production overcapacity and inventory pressure.

Battery production growth lagged behind vehicle production growth in 2021 and 2022, while 2023 and 2024 showed lower battery installation rates with production matching installation growth rates. Battery production increased significantly in 2025, with lower initial installation rates, though July installation rates remained at recent highs.

**2. Declining Ternary Battery Share in Domestic Vehicle Certificates**

Power battery installation demand has experienced exceptional growth rates: 10% in 2019, 2% in 2020 (64 GWh), 143% in 2021 (155 GWh), 91% in 2022 (295 GWh), 32% in 2023 (388 GWh), 41% in 2024 (548 GWh), and 45% in 2025 (355 GWh).

**3. Sustained Strong Automotive Battery Demand Growth**

Passenger vehicle battery demand continues growing strongly, with pure electric passenger vehicles showing 39% demand growth in 2025, while plug-in hybrid passenger vehicles achieved 19% growth, maintaining robust expansion. Pure electric commercial vehicles also experienced substantial growth of 153%. July 2025 battery installation grew 34%, with commercial vehicles showing particularly strong performance—pure electric trucks surged 131% while plug-in hybrid trucks increased 162%.

Battery installation proportions have changed rapidly in recent years. The 2020 hierarchy of pure electric passenger vehicles first, pure electric buses second, and pure electric commercial vehicles third, with plug-in hybrid passenger vehicles fourth, has shifted by 2025 to pure electric passenger vehicles maintaining first position, plug-in hybrid passenger vehicles rising to second, pure electric trucks to third, plug-in hybrid commercial vehicles to fourth, and pure electric buses falling to fifth place.

Pure electric bus market share dropped dramatically from 18.5% in 2020 to 0.9% cumulative in 2025, declining 17.6 percentage points. Plug-in hybrid passenger vehicle battery consumption has grown rapidly from 6.8% in 2021 to 18.1% in 2025, increasing 11.3 percentage points, while pure electric passenger vehicles declined to 63.5%. Plug-in hybrids and pure electrics maintain approximately 80% of core battery demand characteristics for passenger vehicles.

**4. Vehicle Certificate Production Analysis**

Based on certificate battery calculations, 2024 new energy vehicle domestic market installations reached 11.68 million units, up 42% year-over-year, including 6.35 million pure electric passenger vehicles (up 21%), 4.71 million plug-in hybrid passenger vehicles (up 85%), and 540,000 pure electric commercial vehicles (up 45%). July 2025 new energy vehicle certificate production was 1.08 million units, up 21% year-over-year. January-July 2025 cumulative domestic certificates totaled 6.97 million units, up 34%, including 4.21 million pure electric passenger vehicles (up 48%), 2.40 million plug-in hybrid passenger vehicles (up 15%), and 330,000 pure electric commercial and freight vehicles.

**5. Battery Supplier Competition Remains Insufficient**

Battery market competitive landscape has shown minimal change over recent years. July 2025 featured 33 battery suppliers at a low level. Due to relatively slow technological progress and significant scale growth characteristics in power battery markets, battery companies have achieved strong production and installation volume growth. Existing battery industry patterns show little obvious change, with market share determined largely by investment levels, creating sustained expansion advantages for major battery companies while providing opportunities for smaller companies to achieve growth through technological or other breakthroughs. Battery industry patterns remain relatively stable during high-speed growth periods.

Future battery industry changes present significant opportunities, with automakers increasingly manufacturing batteries independently or collaborating with related companies, gradually making battery companies core suppliers to vehicle manufacturers.

**6. Battery Capacity Differentiation Across Vehicle Types**

Current electric vehicle market high-end demand is intense, while demand for upgraded "senior mobility" vehicles transitioning to micro-vehicles and family economy transportation remains strong, particularly for economical electric vehicles influenced by pandemic conditions. However, mid-2024 tax exemption policy changes for short-range electric vehicles drove obvious premiumization. In late 2024, trade-in policies and market recovery boosted small vehicle segments and micro electric vehicle popularity, driving down installed battery capacity.

From supply chain perspectives, automakers will become increasingly powerful, strengthening control over battery companies and upstream supply chains while enhancing downstream brand marketing capabilities. Under new energy systems, "automaker dominance" characteristics will continue strengthening.

**7. High Energy Density Battery Requirements Declining**

Pure electric vehicles currently utilize batteries with energy density primarily ranging between 125-160 Wh/kg. Third quarter 2025 showed particularly notable performance in the 140-160 range, reaching 36% share, up 2 percentage points year-over-year. Third quarter 2025 vehicles with battery energy density above 160 Wh/kg comprised 7%, significantly down from 11% in 2024, primarily due to lithium iron phosphate battery substitution for ternary batteries reducing energy density. Products with energy density below 125 Wh/kg decreased to 1% in 2025.

**8. Battery Company Landscape**

Battery company competitive landscape features Contemporary Amperex Technology Co.,Ltd. and Byd Company Limited as relatively strong players. Contemporary Amperex Technology Co.,Ltd.'s third quarter 2025 market share decreased to 42%, while Byd Company Limited's share rose from 15% in 2020 to 26.9% in 2023. Other battery companies showed significant differentiation trends. Battery companies exhibit slowing concentration effects among leading firms, maintaining 68% combined share for top two companies in 2025 compared to 72% in 2022, leaving over 30% market space for other companies.

Lithium iron phosphate battery products demonstrate clear differentiation advantages. Byd Company Limited performed relatively well but experienced adjustment periods early this year. Contemporary Amperex Technology Co.,Ltd.'s lithium iron phosphate battery market share has surpassed Byd Company Limited since 2024. Byd Company Limited continued declining in 2025, with market share falling 10.1 percentage points year-over-year. Eve Energy Co.,Ltd. and CALB showed strong performance. Sunwoda Electronic Co.,Ltd., REPT BATTERO, SVOLT Energy, and Jidian New Energy demonstrated notable improvements. Due to Byd Company Limited's comprehensive transition to lithium iron phosphate batteries, Contemporary Amperex Technology Co.,Ltd., LG, SVOLT, and other top four companies' ternary battery advantages became more pronounced, with Juwan TechRes and Eve Energy Co.,Ltd. performing particularly well recently. LG Energy Solution's statistics improved due to increased Tesla domestic sales proportions.