Chinese electric vehicle battery makers increased their dominance to a global share topping 70% last year, up from less than 50% in 2021, while South Korean competitors struggle in the US market.

Industry leader Contemporary Amperex Technology (CATL) offers a range of EV and plug-in hybrid vehicle batteries at various price points. Customers include major Chinese automakers and a growing number of European car companies like Volkswagen and the Mercedes-Benz Group.

Net profit grew 42% in 2025 to a record RMB 72.2 billion (USD 10.5 billion).

CATL led the global market for EV and hybrid batteries in 2025 with a 39.2% share based on installed capacity, up one percentage point from 2024, according to South Korea’s SNE Research.

Its high market share helps power a virtuous cycle of price and quality competitiveness that only adds to its scale.

While EV sales are slowing in the US and some other regions, they are growing worldwide. Vehicle battery installation volume remained strong in 2025, climbing 32% from 2024 to 1,187 gigawatt-hours, of which the Chinese market accounted for about 60%.

China’s battery market continues to expand, fueled by government subsidies to promote adoption of EVs and other new energy vehicles. CATL and other Chinese makers also are capturing demand overseas, especially in Europe, where they have benefited from a lack of strong local rivals.

Six of the top ten global automotive battery manufacturers by installed capacity in 2025 were Chinese, with their combined share increasing by about four points from 2024 to 70.4%, according to SNE Research.

EV giant BYD ranked second after CATL, developing and producing batteries in-house for its own vehicles while also increasing supply to other companies like Xiaomi and Stellantis, the maker of Fiat, Peugeot, Jeep cars.

China Aviation Lithium Battery (CALB) and Gotion High-tech, in fourth and fifth place, respectively, also increased shipments.

Meanwhile, South Korean battery makers are struggling. Their combined market share last year fell by about three points to 15.3%, roughly halving from over 30% in 2021.

Their decline reflects a focus on the US, where the Trump administration has eliminated EV-friendly policies put in place under the previous administration.

LG Energy Solution, South Korea’s top battery player and the third largest worldwide, derives roughly 40% of its sales from the US. Net profit fell 76% in 2025 to KRW 80.8 billion (USD 53.9 million), less than 1% of CATL’s net profit for the same period.

SK On and Samsung SDI, South Korea’s second and third largest battery makers, respectively, both reported net losses.

“Demand for EVs continues to decline, and we expect a temporary negative growth in batteries,” said Lee Chang-sil, LG Energy Solution’s CFO.

South Korean companies are reconsidering their strategies in the US. This month, SK On cut around 1,000 jobs at its battery plant in the Southern state of Georgia, about 40% of the plant’s workforce. LG Energy Solution said in December it would sell buildings and other assets at its joint venture battery plant in Ohio with Honda Motor to Honda’s US subsidiary.

Among Japanese companies, Panasonic Holdings ranked seventh worldwide, with a market share of less than 4%. Panasonic began operations at a battery plant in the Midwestern state of Kansas in July, but it has postponed full operations there—originally planned for the end of fiscal 2026—due to declining sales at major customer Tesla.

The Chinese market is expected to slow this year, posing a risk to Chinese suppliers. The Chinese government revised subsidies for the purchase of EVs and other new energy vehicles at the end of 2025, contributing to a 28% year-on-year drop in new sales of new energy vehicles in January and February.

Chinese companies are expanding production in other countries to diversify. CATL completed a production line at its first Hungarian plant at the end of 2025 and recently began operations.

CALB is also increasing production in Europe and Southeast Asia.

“We will steadily promote the construction of production facilities to adapt to local policies and market needs,” chairperson Liu Jingyu told Nikkei.

This article first appeared on Nikkei Asia. It has been republished here as part of 36Kr’s ongoing partnership with Nikkei.

Note: KRW, RMB figures are converted to USD at rates of KRW 1497.97 = USD 1 and RMB 6.90 = USD 1 based on estimates as of March 25, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.