Supply Chain

China 2025 Supply Chain Overview China's battery raw material sector shows high concentration and strong external resource dependence. While upstream mining relies heavily on overseas lithium, cobalt, and nickel resources, midstream refining is dominated by Chinese firms. Tianqi Lithium, Ganfeng Lithium, and Yahua Group together control over 75% of domestic lithium processing, while Huayou Cobalt holds more than 30% of global cobalt refining capacity. This structure gives China a competitive advantage in refining and processing, despite its reliance on overseas upstream resources. China's battery materials segment is marked by rapid consolidation and technology-driven divergence. LFP cathodes dominate shipments, given their dominant position in domestic EVs and ESS, while ternary materials continue to lose share. Anodes and separators are highly concentrated, with clear leaders such as BTR and SEMCORP benefiting from scale advantages and high technological barriers to entry. Electrolytes also show rising concentration. Overall, the sector is transitioning toward fewer, larger suppliers with strong cost and process advantages.

The battery cell and pack market has reached extreme concentration, with the top ten firms controlling over 93% of domestic share. CATL and BYD form a stable duopoly, together exceeding 70% of market share. Scale, capital intensity, and system integration increasingly define competitive positioning, widening the gap between leading players and the rest of the market with increasing barriers to entry.

Electric vehicles and energy storage represent the second growth curve of China's battery industry. Chinese companies dominate global EV battery installations and occupy the top tier of energy storage cell suppliers. CATL leads both segments, while emerging players are scaling rapidly in the energy storage market. Cost efficiency, manufacturing scale, and supply chain integration continue to underpin Chinaʼs global leadership in downstream applications. Battery recycling is evolving into a scale- and channel-driven circular economy. Market concentration is rising as leading players secure feedstock and integrate with upstream manufacturers. GEM and Brunp lead in both processing capacity and recovery efficiency, with advanced technologies enabling recovery rates above 99% for key metals. Control over recycling channels is increasingly strategic for cost stability and long-term resource security. Source: SMM

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