Recent data released by the General Administration of Customs show that China's total exports of lithium-ion batteries in the first half of this year reached US$34.102 billion (approximately RMB 245 billion), representing a year-on-year increase of 25.14%—a new historical high for the same period—and reversing the decline seen in exports during 2024.

Industry insiders believe that global expansion is a crucial strategic direction for China's lithium-ion battery companies. In this context, Chinese enterprises must further strengthen technological innovation, continuously enhancing both product performance and quality. By leveraging their technological advantages, they can break through trade barriers, steadily increase their market share in the global arena, bolster their competitive edge, and ultimately contribute to the ongoing global transition toward green energy.

Emerging markets show remarkable expansion results.

Thanks to advanced technology and a fully integrated industrial chain, China's lithium-ion battery industry boasts significant advantages and strong global competitiveness. Currently, China supplies 70% of the world's battery materials and over 60% of the global market share for power batteries, firmly establishing itself as a key player in the global lithium-ion battery market.

Data shows that from January to June this year, China exported 2.156 billion lithium-ion batteries, representing a year-on-year increase of 17.6%. By export origin, the top six provinces and cities in terms of domestic lithium battery exports during the first half of the year were Fujian, Guangdong, Jiangsu, Shanghai, Anhui, and Zhejiang, collectively accounting for more than 80% of the nation’s total export value. Among them, Fujian Province continued to be the largest source of China’s lithium-ion battery exports, with exports totaling US$8.85 billion—up 20.6% year-on-year—and making up 26% of the country’s overall lithium-ion battery export revenue.

On the export side, Germany has overtaken the United States to become China's largest exporter of lithium-ion batteries, with exports totaling $6.515 billion from January to June—up 11.5% year-on-year—and accounting for 19.1% of China's total lithium-ion battery exports. The U.S. has dropped to the second-largest export market, reporting a total export value of $5.998 billion from January to June, an increase of 18.6% compared to the same period last year, representing 17.6% of China's overall lithium-ion battery exports. Vietnam, the Netherlands, and South Korea round out the third through fifth positions, respectively.

Industry experts point out that the decline in exports to the U.S. is linked to a series of recent tariff hikes and policy adjustments. In early July, the U.S. passed another "big and beautiful" piece of legislation, prematurely ending certain key clean energy subsidies previously included in the Inflation Reduction Act (IRA) while significantly tightening restrictions on Foreign Entities of Concern (FEOC). This move has further complicated Chinese lithium-ion battery companies' ability to enter the U.S. market. Meanwhile, analysis firm Mysteel notes that the U.S. isn't just limiting direct investments targeting Chinese firms—it's also employing indirect strategies, such as restricting technology licensing and supplies of critical materials, to effectively exclude Chinese enterprises from the U.S. market.

However, the latest report released by the U.S. Clean Energy Association (CEA) reveals that the U.S. energy storage manufacturing sector is facing a "cold wave" amid rising tariffs and policy adjustments. The report highlights that multiple new tariffs imposed by the U.S. on energy storage batteries and components have directly led to the cancellation of approximately 21 GWh of battery storage production capacity across three U.S. companies this year. Additionally, five other companies have postponed plans to bring over 19 GWh of planned capacity online. The report specifically underscores that the U.S.'s heavy reliance on Chinese battery materials—accounting for more than 60% of its supply—is the primary reason behind this challenge.

Notably, among China's top 15 destination regions for lithium-battery exports, only shipments to South Korea and Japan saw year-on-year declines—exports to all other markets, however, experienced growth. In particular, exports to countries such as Saudi Arabia, Australia, Hungary, and Chile recorded triple-digit growth rates compared to the previous year. This underscores the remarkable success of Chinese lithium batteries in penetrating emerging markets. As the global energy transition accelerates, an increasing number of nations are witnessing rapid surges in demand for lithium batteries. Thanks to their cost-effectiveness and technological advantages, Chinese lithium batteries have swiftly gained a foothold in these key markets.

Export growth has maintained a strong, long-term upward trend.

Despite the current uncertainty in the global trade environment, demand for energy storage products remains strong in international markets. In the first half of the year, energy storage batteries played a significant role in China's lithium-battery exports.

Data released by the China Automotive Power Battery Industry Innovation Alliance shows that in the first half of the year, China's exports of power and other batteries reached 127.3 GWh, a year-on-year increase of 56.8%. This significant growth in export volume was primarily driven by other types of batteries, such as energy storage batteries. Among them, cumulative exports of these "other" batteries surged by 174.6% year-on-year, totaling 45.6 GWh—and accounting for 35.9% of the country's total battery exports.

So far this year, several Chinese lithium-battery companies, including CATL, BYD, and Ruipu Lanjun, have announced major overseas orders. According to industry data from the Energy Storage Application Branch of CESA, from January to June, Chinese enterprises secured 199 new overseas energy-storage orders or partnerships, with a total capacity exceeding 160 GWh—up 220.28% year-on-year. Regionally, the Middle East accounted for 37.55 GWh of these orders, representing 23.44%; Australia followed with 32.31 GWh, or 20.17%; and Europe came in at 22.81 GWh, making up 14.24%.

Wanlian Securities' research report points out that, on the international front, the U.S. has seen a marginal easing of additional tariffs, allowing export channels to gradually recover. Meanwhile, Europe has completed its inventory destocking process, leading to a synchronized rebound in household and large-scale energy storage markets. In the Middle East, major energy storage projects have finished their bidding processes and are now steadily moving into the implementation phase, providing multi-point support for global energy storage installations and potentially boosting demand for China's battery cells.

Looking ahead, the Gaogong Industry Research Institute for Energy Storage (GGII) forecasts that by 2030, China's energy storage battery export market is expected to maintain its growth momentum, with total exports projected to reach 560 GWh. In terms of direct exports, European and American markets remain the primary destinations, accounting for more than 80% of shipments. Meanwhile, indirect exports to emerging markets in Asia, Africa, Latin America, and Eastern Europe have shown significant growth. According to GGII statistics, China's overseas orders for energy storage lithium batteries exceeded 302 GWh in 2023–2024.

  Strengthen technological innovation to maintain our competitive edge.

Although China's lithium-battery industry enjoys significant advantages, industry insiders caution that, in the face of today's complex international landscape and numerous challenges, Chinese lithium-electric companies must adopt a range of measures to achieve sustainable development.

Analysts point out that while China's lithium-ion battery industry faces export hurdles to the U.S. in the short term, the phasing out of U.S. subsidies is also eroding the competitive edge of Japanese and Korean lithium-ion companies. In a market with reduced subsidies, Chinese firms like CATL can leverage their lower costs to gain greater market share in emerging economies, ultimately leading to a rebalancing scenario where "the U.S. loses, but the rest of the world steps in."

Mysteel analysis points out that the biggest advantage for China's new energy companies lies in the completeness and high efficiency of their entire industry supply chain. Looking ahead, the key to breakthroughs for Chinese lithium battery firms will be to build on their existing strengths while simultaneously driving technological innovation and accelerating the shift toward emerging markets. Beyond the European market, they should also keep an eye on the markets in South America and the Middle East.

Dong Yang, Chairman of the China Automotive Power Battery Industry Innovation Alliance, pointed out that during the development of China's power battery industry, key attention should be paid to the following aspects: First, while fostering technological innovation, it is crucial to strengthen the construction of an intellectual property system. Second, in the midst of competition, robust protection of intellectual property rights is essential to establish a healthy competitive order domestically. It’s important to create mechanisms that enable the paid dissemination of cutting-edge technologies within the industry—balancing innovation protection with the goal of driving industry growth. Third, for product types and technological areas where China already leads globally, we must leverage advanced tools and strategies effectively. Finally, integrating into the international intellectual property system requires thorough and meticulous study of global rules, coupled with their strategic application, to build a highly efficient defense and offense framework.