.png){kind=logo}
CATL and BYD together account for more than half of global EV battery installations, maintaining leadership through scale and innovation.
LFP batteries, higher energy density, and declining battery costs are accelerating EV adoption across major automotive markets worldwide.
Recycling initiatives, solid-state battery research, and global manufacturing expansion are shaping the industry's long-term growth trajectory.
Battery manufacturers sit at the center of the global EV boom, and Chinese manufacturing technology companies CATL and BYD effectively control the international battery supply chain. Latest industry data shows these companies commanding over half of all worldwide EV battery installations.
The EV battery industry is experiencing rapid growth as brands pay attention to improvements concerning efficiency, price reduction, and scaling of production as a response to the high global demand. The first thing that comes to mind is the ongoing reduction of battery costs. This tendency has been observed, led by several factors, including technological progress, improvement in manufacturing processes, and economies of scale.
Another important development in EV batteries is increasing energy density. It allows the batteries to have greater capacity in a smaller space, extending driving range. Lithium iron phosphate batteries are becoming widely used owing to their reduced price, increased safety, and durability. They are used by such reputable brands as CATL and BYD.
Another key trend is the growing investments in solid-state batteries. Such batteries are not only more efficient in terms of energy but also charge more quickly than ordinary lithium-ion batteries. Another major trend is increased investment by battery manufacturers and automakers in recycling initiatives. This helps to recover valuable metals such as lithium, nickel, and cobalt from used batteries.
Battery manufacturing capabilities keep rising as gigafactories keep opening in various countries such as Asia, Europe, and North America. Countries are investing in the development of such facilities. The aim is to enhance their battery supply chains and support EV industry growth. Overall, all these trends have contributed greatly to the rise of the EV battery sector.
Also read: Best Electric Cars for Families in 2026: Top EVs Ranked
CATL continues to stand out as the largest maker of EV batteries across the globe. In relation to CATL's market share figures for 2025 as reported by SNE Research, CATL had an impressive market share of 39.2%, translating into 464.7 GWh of battery installation figures.
CATL maintains its leading position through its collaborations with global automobile firms, dominance in LFP batteries, and ongoing innovations in battery development. Recently, CATL unveiled innovative battery systems that feature increased mileage and quicker charging rates.
BYD ranked second globally, with 194.8 GWh of battery installations. This represented a 16.4% market share in 2025. Despite last year’s market drop, the company has upgraded its production capacity and strengthened its EV ecosystem.
BYD enjoys the advantage of having a vertically integrated business strategy since it produces electric cars and batteries. Its Blade Battery technology has been highly acclaimed in the industry for its performance in terms of safety, longevity, and affordability.
The world's top EV battery manufacturers in 2025 were:
Chinese battery manufacturers are still at a strong advantage in the international market. Companies such as CATL, BYD, CALB, Gotion High-Tech, EVE Energy, and Svolt account for a considerable part of total EV battery production on a global level. It is underpinned by their manufacturing capacities, domestic market needs, state support, and advancements in battery chemistry.
It should be highlighted that China is taking more control over LFP battery technology. It becomes highly popular among automobile manufacturers for its lower price, higher safety, and long lifespan.
In spite of the strong dominance of CATL and BYD, there is still tough competition among players in this market segment. In that case, LG Energy Solution, SK On, Panasonic, and Samsung SDI keep making considerable investments in the creation of new types of batteries, such as solid-state and high-density ones. As for CATL, it is engaged in creating sodium-ion batteries and ultra-fast charging technologies.
EV battery installations globally stood at 1,187 GWh in 2025, reflecting an increase of 31.7% from the previous year. CATL and BYD accounted for 55.6% of all EV battery installations in 2025, emphasizing their dominance in a fast-growing industry. CATL and BYD show no signs of slowing down on innovation, which likely keeps their lead intact in the coming years.
Also read: The Biggest Threat to New York's EV Revolution Isn't Funding; It's Finding Enough Electricians
Q1. Why are CATL and BYD leading the EV battery market?
CATL and BYD lead through large-scale manufacturing, technological innovation, strong supply chains, competitive pricing, and extensive partnerships with global automakers.
Q2. What makes LFP batteries increasingly popular?
LFP batteries offer lower costs, enhanced safety, longer lifespans, and reliable performance, making them attractive for affordable, high-volume electric vehicles.
Q3. What are solid-state batteries and why are they important?
Solid-state batteries use solid electrolytes instead of liquid ones, offering higher energy density, faster charging, improved safety, and future performance benefits.
Q4. How does battery recycling benefit the EV industry?
Battery recycling recovers valuable materials, reduces environmental impact, lowers resource dependency, supports sustainability goals, and strengthens supply-chain resilience globally.
Q5. What trends will shape the future of EV batteries?
Key trends include lower battery costs, improved energy density, LFP growth, solid-state innovation, recycling advancements, and expanded global production capacity.
