Chinese battery manufacturers experienced significant growth in the first half of this year, driven by a surge in demand for energy storage systems (ESS) due to a global boom in AI data center construction, state-run CCTV reported on July 27.
In the first half of the year, China's lithium-ion battery production increased by 39.3% compared to the previous year, with shipments of batteries for ESS rising by over 80%. The Chinese government aims to secure 300 million kW of new ESS capacity by 2030, which is double the 136 million kW installed in China as of the end of 2025.
During the first half of the year, 35 ESS companies in China reported a total order volume of 550 GWh, with domestic orders reaching 383 GWh, marking a 121.8% increase year-on-year. According to Dongwu Securities, the global ESS market is expected to grow at an average annual rate of 30% from 2026 to 2030.
CATL (Contemporary Amperex Technology Co., Limited), the world's leading battery manufacturer, reported a 54.8% increase in revenue for the first half of the year, reaching 276.9 billion yuan (approximately $60 billion). Its net profit rose by 41.9% to 43.2 billion yuan (about $9.3 billion).
Of CATL's first-half revenue, sales of batteries for new energy vehicles amounted to 192.1 billion yuan, a 46.0% increase from the previous year, while ESS battery sales surged by 87.5% to 53.2 billion yuan. Domestic sales increased by 61.2% to 189.7 billion yuan, while international sales rose by 42.3% to 87.1 billion yuan. In response to the growing demand for ESS batteries, CATL is currently expanding its production capacity by 764 GWh.
Additionally, rising oil prices from the Middle East have contributed to increased sales of new energy vehicles, benefiting Chinese battery manufacturers. According to SNE Research, global battery usage for vehicles increased by 16.3% year-on-year as of May this year. CATL maintained its market share at 40.2%, followed by BYD at 14.4% and LG Energy Solution at 8.7%.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.