Ningde Era has released its third-quarter results. According to the financial report, the company achieved a quarterly revenue of 104.186 billion yuan, a year-on-year increase of 12.9%; net profit attributable to shareholders reached 18.549 billion yuan, growing by 41.21%. In the first three quarters, Ningde Era reported revenue of 283.072 billion yuan, an increase of 9.28%, with net profit attributable to shareholders totaling 49.034 billion yuan, up 36.2%, which translates to a daily profit of approximately 180 million yuan.
However, amidst soaring performance, its dominant market position appears to be under threat. According to data recently released by the China Passenger Car Association, Ningde Era's market share in the power battery sector has dropped to 41.7%, marking a near six-year low, while the share of companies in the second tier is gradually rising.
Regarding the rapid decline in Ningde Era's power battery market share, Cui Dongshu, secretary-general of the China Passenger Car Association, stated that the battery industry is developing rapidly, particularly in the lithium iron phosphate sector, where Ningde Era's share is diminishing and becoming diluted. Meanwhile, in the ternary battery sector, due to BYD's full transition to lithium iron phosphate batteries, Nishin, LG, and other companies' advantages have become more pronounced.
The Undermined Leader Data from the China Passenger Car Association shows that Ningde Era's market share has fluctuated from 50.0% in 2020 down to 43.3% in 2025. In contrast, companies like Contemporary Amperex Technology Co., Limited, Gotion High-Tech, and EVE Energy have seen their shares rise steadily.
Cui Dongshu elaborated, stating, "Ningde Era's market is generally experiencing a decline or slow growth, primarily influenced by varying industry development speeds."
Additionally, some industry analysts believe that the rise in market share for second-tier companies is partly due to breakthroughs in niche markets.
"These second-tier manufacturers have truly come up with major technological advancements," said an industry insider. Those companies that were once suppressed by Ningde Era are now seizing their chance. Instead of blindly aiming to surpass the leading companies across the board, they are identifying their positions and excelling in specific niches. Some focus on lithium iron phosphate technology, others specialize in cylindrical batteries, and some are developing dedicated batteries for commercial vehicles. This differentiated competition strategy has made the market ecosystem healthier.
According to this insider, the power battery industry is transitioning from a "single dominance with many strong contenders" toward "a multitude of competitors fighting for supremacy": "These second-tier manufacturers are like exceptional students in a class; while they may not have the highest overall scores, they excel in their areas of expertise."
The Demand for Voice from Automakers An important factor contributing to the further dispersion of market share for power batteries is that automakers are opting to partner with multiple battery companies to mitigate supply chain risks, avoiding dependence on a single supplier.
An insider from a leading automaker noted that such a situation is indeed present in the battery industry. In the short term, the battery sector has not yet entered a true elimination phase, and the competitive landscape among first- and second-tier battery firms remains relatively stable. Automakers are more focused on supply chain assurance and cost competitiveness, generally opting for two or more battery suppliers to modulate internal allocations and manage pricing.
“Overall, leading battery suppliers find it increasingly challenging to expand their market share, and maintaining their current position has become quite difficult,” this insider added. In the medium to long term, each automaker sees batteries as a core competitive advantage moving forward. They are all researching solid-state batteries to ensure their self-developed batteries outperform those available on the market, thus undertaking some degree of self-research and production.
Regarding the survival strategies of second-tier manufacturers, an insider from one of the listed battery companies pointed out that automakers typically choose two to three suppliers for safety, and compared to Ningde Era and BYD, collaborating with second-tier firms offers automakers greater bargaining power in negotiations, research, and production lines.
This insider revealed that automakers are keen to enhance their battery expertise to facilitate product upgrades and iterations. Previously, they relied heavily on self-research, which proved too costly, prompting a shift towards collaborative research with battery firms. However, Ningde Era is reluctant to adopt this model, preferring automakers to purchase its products, whereas second-tier battery companies are more open to collaboration, as seen in the partnership between Xinwangda and Li Auto.
Recently, reports indicated that Li Auto and battery manufacturer Xinwangda would establish a joint venture with a 50:50 investment ratio. This joint venture will primarily focus on the production, manufacturing, and sales of lithium-ion power batteries for electric vehicles, aimed at producing Li Auto's self-researched power battery products, with deliveries expected next year.
Informed sources revealed that Li Auto refers to its battery project with Ningde Era as a joint development; however, in the partnership with Xinwangda, Li Auto has taken a leading role in designing the battery products, processes, and materials, categorizing it as a self-researched battery internally.
Industry insiders state that forming a joint venture benefits both parties, as Li Auto can obtain customized, stable, core components while suppliers can mitigate investment risks. However, giants like Ningde Era may find it challenging to align with Li's customized development fees, preferring to apply their technology across a broader range of customer models to dilute R&D costs and maximize return on investment.
In fact, automakers have also been intentionally downplaying battery brands in their marketing. Recently, a discussion arose over the battery branding for Li Auto's i8 model. Screenshots of the specifications page and car purchase inquiries revealed that the i8 originally specified "Power Battery Type: Li-Ion - Ningde Era Qilin 5C Battery," but subsequent versions from some channels have omitted “Ningde Era,” only retaining “Ternary Lithium 5C Supercharged Battery.”
Analysts suggest that while the market share of second-tier enterprises may not soar dramatically, it is indeed climbing steadily. For the entire new energy vehicle industry chain, diversified competition is a positive development, enabling consumers to access a wider range of products and granting automakers increased bargaining power when selecting battery suppliers. Even the end-of-life treatment of batteries is gaining attention. As market competition intensifies, companies realize that merely selling batteries is insufficient; they must consider the entire lifecycle to remain competitive. This comprehensive competition mentality is reshaping the entire industry's business logic.
"This global shift in the battery landscape actually reflects the maturation of the entire new energy vehicle sector," this analyst concluded. As the market transitions from aggressive growth to refined operations, a more diversified competitive landscape is inevitably emerging. Leading enterprises can no longer rely on old methods for profits, while second-tier manufacturers now have opportunities for resurgence, thus enhancing the efficiency of the entire industrial chain through competition.
Regarding the potential continual expansion of market share among power battery firms, Cui Dongshu believes competition will remain fierce, and some second-tier enterprises may fall behind, yet Ningde Era's composite advantages remain evident.