China's battery exports demonstrated a robust recovery in June, according to BOCOM International's latest research report. Shipments surged to 24.4GWh, marking a 27.9% month-on-month increase and accounting for 18.5% of domestic sales during the period. This resurgence follows the partial U.S.-China tariff agreement reached in May. Power battery exports climbed 17.1% monthly, while other categories—including energy storage batteries—soared 54.7% to 8.5GWh, representing 35.0% of total exports compared to 29% in May. Investors are advised to closely track policy developments as the 90-day tariff suspension agreement expires in August.

The first half of 2025 witnessed vigorous activity across China's power battery sector. Production and sales reached 697.3GWh and 659.0GWh respectively, surging 60.4% and 63.3% year-on-year. Installations hit 299.6GWh, a 47.3% annual jump, with lithium iron phosphate (LFP) batteries dominating 81.4% of the market due to superior safety and cost efficiency. Despite tariff headwinds, exports grew 56.8% to 127.3GWh. Market concentration slightly eased, with the top two and top five manufacturers holding 66.4% (-4.3ppts) and 82.2% (-3.1ppts) shares.

Overseas, Chinese power battery makers expanded their global footprint dramatically. From January to May 2025, installations outside China totaled 169.3GWh (+26.1% YoY). Chinese firms captured 43% market share—a 7 percentage point annual gain—with combined shipments of 73.4GWh (+50.4% YoY). Contemporary Amperex Technology Ltd. (300750.SZ) led with 50.4GWh (+37% YoY), while BYD Company Ltd., Gotion High-tech, and CALB delivered explosive growth of 146%, 119%, and 44% respectively. Korean manufacturers saw collective share drop 6ppts to 39%, and Panasonic's shipments fell 12.9% amid declining Tesla Model 3/Y sales.

Solid-state battery commercialization gained momentum. In May, China's automotive engineering authority established standardized evaluation criteria to accelerate industrial coordination. Early July saw Anwa New Energy—backed by Chery—unveil initial prototypes from its 1.25GWh production line in Wuhu. These batteries exceeded 300Wh/kg density, cleared stringent safety tests, and anticipate 400Wh/kg iterations by 2027. Meanwhile, EVE Energy and Sunwoda Electronic announced Hong Kong listing plans to bolster capital strength and global competitiveness. Following CATL's dual listing, its H-shares traded at a 28% premium to A-shares as of July 10.