CITIC Securities has issued a research report projecting that by 2026, Chinese enterprises will continue to hold a strong leading position in the global power and energy storage battery markets. In the power battery sector, Japanese and Korean firms are expected to face ongoing market share erosion when competing with Chinese companies. Geopolitical policies in North America restricting Chinese supply chains present significant opportunities for overseas battery makers in the energy storage business, though the pace of product validation, capacity construction, and order fulfillment remains to be seen. Chinese battery manufacturers are anticipated to maintain a clear competitive edge globally. The report highlights leading domestic battery companies with growing overseas market share, strong profitability, and attractive valuations as key recommendations.

A review of overseas battery firms’ performance in the fourth quarter of 2025 shows revenue growth but profit pressure. The combined revenue of four major overseas battery companies reached RMB 66.3 billion (converted to RMB using the exchange rate at the end of Q4 2025), up 0.4% year-on-year and 9.8% quarter-on-quarter. Despite the cancellation of electric vehicle subsidies in North America at the end of September 2025 impacting power battery sales, rapid growth in the energy storage segment drove overall revenue growth. However, combined operating profit for these four companies was approximately negative RMB 2.57 billion, with both year-on-year and quarter-on-quarter losses widening, mainly due to pressure on North American power battery operations and high initial operating costs in energy storage.

In terms of competitive landscape, overseas battery makers experienced a notable decline in power battery market share, while their energy storage business remains in its early stages. According to SNE Research data, the combined power battery installation volume of the four overseas companies in Q4 2025 was about 56.2 GWh, down 0.7% year-on-year and 18.1% quarter-on-quarter, largely affected by the subsidy cancellation in North America. Their collective global market share in power battery installations stood at 19.0%, a decrease of 3.5 percentage points year-on-year. In comparison, Chinese company CATL increased its global power battery installation share to 39.2% in 2025, up 1.2 percentage points from 2024. In the energy storage sector, overseas battery firms still hold a relatively low market share. Only Samsung SDI and LG Energy Solution ranked among the top ten globally in energy storage shipments for 2025, placing ninth and tenth respectively, with shipments of approximately 12 GWh and 10 GWh, each holding about 2% market share. The top eight positions were all occupied by Chinese companies.

Looking ahead, CITIC Securities expects overseas battery manufacturers to continue facing challenges in the power battery segment, as North American electric vehicle sales are likely to remain subdued following the subsidy cancellation. Meanwhile, in the European market, Chinese companies are set to benefit from the gradual ramp-up of local production capacity, further increasing their power battery market share. In energy storage, geopolitical policies in North America limiting Chinese supply chains offer substantial growth opportunities for overseas battery firms. Companies like LG Energy Solution and Samsung SDI are actively pivoting toward the energy storage business, securing substantial orders, developing prismatic LFP battery products, and expanding local battery production capacity in North America to capture more market share in the region’s energy storage sector.