Battery

Battery Prices Drop Fast

Battery prices dropped by 20% in 2024, with the fastest decline seen in China at nearly 30%. Lower prices, supported by cheaper chemistries, are driving the adoption of Chinese batteries across all markets. Here is more information about China’s power battery sector. Lithium-ion battery is mainly grouped in power batteries and energy storage batteries. 

Source: China Battery Industry Association

source: IEA Global EV Outlook 2025

China Contributes to Global Clean Energy Drive

Battery production and processing

According to the International Energy Agency (IEA), China's production of lithium-ion batteries demonstrates global dominance in 2024, and expects to stay a dominant player in 2030. Similarly, China dominated the processing of critical minerals, most notably the processing of cobalt, graphite, and rare earth minerals in 2023.

Battery exports -- Germany overtook the U.S. as China's Largest Battery Export Destination

China's lithium-ion battery exports account for nearly 20% of total sales, in which power batteries make up about 70%, while energy storage batteries account for around 30%. In the first half of 2025, Germany overtook the United States as the leading destination for China’s lithium battery exports. Previously, the United States had held that position for five consecutive years. 

China’s lithium battery exports to the United States are mainly energy storage batteries. In 2023, China exported $10.8 billion of Li-ion storage batteries to the United States, accounting for 72% of all US imports of the product. These Li-ion storage batteries play a large role in decarbonizing the electric energy system in the United States (Webster, 2024). On the other hand, the demand for Li-ion batteries for electric vehicles in the US reached approximately 100 GWh in 2023, which translates to about $14 billion USD in value, assuming an average cost of $140/kWh of Li-ion battery pack in the US (Argonne National Lab, 2025 & Energy Metal News, 2023). Out of the demand for EV batteries in the US, about 20% was met by imports from China, which accounted for approximately $2.8 billion in value of imports in 2023 (Webster, 2024).  From January to June this year, China exported lithium batteries worth $5.998 billion to the United States, accounting for 17.59% of China’s total lithium battery exports—a decline of about 8 percentage points year-on-year.