In 2025, China's lithium battery industry continued its rapid growth momentum, driven by the dual engines of new energy vehicles and energy storage markets. The combined annual output of power and energy storage batteries exceeded 1,700 GWh, and sales surpassed the 1 TWh mark for the first time, further consolidating China's dominant position in the global lithium battery industry.

Production and Sales Reach New Highs, Energy Storage Batteries Become Growth Engine

According to data from the China Automotive Power Battery Industry Innovation Alliance, China's total output of power and energy storage batteries reached 1,755.6 GWh in 2025, a year-on-year increase of 60.1%; total sales reached 1,700.5 GWh, up 63.6% year-on-year. Among these, cumulative sales of power batteries stood at 1,200.9 GWh, up 51.8%, and cumulative power battery installations reached 769.7 GWh, up 40.4%.

Notably, the energy storage battery market experienced explosive growth. China's energy storage lithium battery shipments reached 630 GWh in 2025, an 85% surge, and accounted for over 90% of global energy storage battery shipments. By the end of 2025, the country's installed capacity of new energy storage systems reached 144.7 GW, an increase of more than 85% compared with the end of 2024. Energy storage batteries have become a key growth engine for the industry, with their share expected to rise from about one‑quarter to one‑third or even one‑half in the future.

In terms of exports, China's combined exports of power and energy storage batteries reached 305.0 GWh in 2025, up 50.7% year-on-year, contributing nearly RMB 400 billion in export value, which accounted for more than 40% of the total exports of the "new three" items (electric vehicles, lithium batteries, and photovoltaic products).

Lithium Iron Phosphate Dominates the Market, Technology Roadmap Continues to Upgrade

From a technology perspective, lithium iron phosphate (LFP) batteries have taken an absolute leading position thanks to their high safety, long cycle life, and cost advantages. In 2025, cumulative LFP battery installations reached 625.3 GWh, accounting for 81.2% of total installations, up 52.9% year-on-year. Ternary battery installations reached 144.1 GWh, up 3.7% year-on-year.

In terms of cutting‑edge technologies, the industrialization of solid‑state batteries and sodium‑ion batteries is accelerating. According to data from the Zhongguancun New Battery Technology Innovation Alliance, sodium‑ion battery shipments increased steadily in 2025, while solid‑state battery research and development made key progress, with some companies completing small‑scale pilot tests and vehicle trials. At the same time, the energy density of mass‑produced power battery cells generally increased by 10%, 4C+ fast‑charging technology shortened EV charging times by more than 20 minutes, and battery cycle life exceeded 2,000 cycles.

Capacity and Prices: Structural Contradictions Stand Out, "Anti‑Involution" Becomes a Keyword

While maintaining rapid growth in 2025, the lithium battery industry also faced significant structural capacity challenges. In January 2026, four central government departments (including the Ministry of Industry and Information Technology) jointly held an industry symposium, emphasizing the need to optimize capacity planning, avoid overcapacity risks, and regulate market competition. From a policy perspective, the export tax rebate for batteries was reduced from 9% to 6% effective April 1, 2026, with plans to phase it out entirely by 2027, guiding the industry from subsidy dependence toward technology‑driven competition.

Meanwhile, lithium carbonate prices experienced a wide "down‑then‑up" fluctuation. Wind data shows that the price of lithium carbonate fell from RMB 75,200/ton at the beginning of the year to a low of RMB 59,900/ton on June 24, then rose rapidly in the second half of the year due to surging energy storage demand, reaching RMB 104,900/ton on December 25. The Gaogong Industry Institute (GGII) estimated that the average price of lithium carbonate in the second half of 2025 would be around RMB 80,000/ton. The industry is shifting from a phase of "disorderly supply" to a new cycle driven by cost considerations.

Amino Alcohols: Enabling Performance Upgrades in Lithium Battery Separators and Electrolytes

Against the backdrop of innovation and upgrading in lithium battery materials, amino alcohol compounds, as a class of multifunctional additives, have shown significant application value in battery separator modification and electrolyte additives. Research indicates that adding amino alcohols to the coating of lithium battery separators — thanks to the hydrophilic groups (hydroxyl and amino) they contain — can effectively accelerate the diffusion of electrolyte on the separator surface, improve electrolyte wettability, provide good channels for lithium ion transport, and thereby enhance the rate performance and cycle life of the battery. In addition, amino alcohol compounds can serve as additives in non‑aqueous electrolytes for lithium batteries, helping to reduce the concentration of free HF in the electrolyte and improving battery safety and stability.

As the lithium battery industry continues to demand higher safety, higher energy density, and longer cycle life, the demand potential for amino alcohol products in the battery materials field will be further unleashed. Our company has long focused on the R&D and production of 2‑Amino‑2‑methyl‑1‑propanol, with products widely used in batteries, coatings, metalworking fluids, pharmaceutical intermediates and other industrial fields. We are committed to providing high‑quality chemical solutions to customers worldwide.