알파경제 - China’s Battery Market Faces Shake-Up as Small Players Struggle Amid CATL, BYD Dominance

Photo = Yonhap news

[Alpha Biz= Paul Lee] June 30, 2025 — SEOUL — China’s battery industry is undergoing a wave of consolidation as mid- and small-sized battery companies grapple with financial pressures, largely due to market domination by CATL and BYD, which together now hold over 70% of China’s battery installation market.



Industry insiders report that several Korean battery companies have recently been approached by Chinese counterparts seeking to sell equity stakes or offload key assets — including raw materials and production equipment — at deeply discounted prices. The moves reflect growing distress in China’s secondary battery sector, where profit margins have eroded amid intensifying competition.



While China’s total installed battery capacity surged 41.5% year-on-year to 548.5 GWh in 2024, the benefits of growth have largely concentrated in the hands of a few top players. Analysts warn that price competition among smaller firms is reaching unsustainable levels, prompting concerns of impending large-scale restructuring.



Only a handful of second-tier players like EVE Energy and Sunwoda are actively shifting their focus toward commercial vehicles and hybrid electric vehicles (HEVs) to navigate the current market.



In a related development, LG Energy Solution absorbed approximately 20 R&D employees from JEVE — once dubbed “the next CATL” — after the Chinese firm halted production in 2023 and entered liquidation. The transferred personnel are now engaged in lithium iron phosphate (LFP) research at LG’s R&D center in Nanjing.

알파경제 Paul Lee 특파원(hoondork1977@alphabiz.co.kr)