China's battery industry is the backbone of both its EV boom and the global storage build-out. CATL and BYD together account for a large share of the world's electric-vehicle and stationary batteries, and Chinese firms dominate upstream refining of lithium, nickel and cobalt.
Chemistry: LFP vs NMC
China popularized lithium-iron-phosphate (LFP) chemistry, now dominant in its EVs and increasingly in storage worldwide because of lower cost and strong safety. NMC remains common for longer-range vehicles. This chemistry choice ripples into material demand, recycling and trade policy.
Refining dominance
Beyond cell assembly, China controls a large share of midstream refining - turning raw minerals into battery-grade chemicals - which is why "where the mine is" matters less than "where refining happens." That concentration is a strategic risk and a cost advantage at once.
Storage and exports
Utility-scale storage paired with solar and wind is a major demand driver (see Grid & Storage), and Chinese battery and EV exports are expanding into Europe, Southeast Asia and Latin America. The EV revolution and this supply chain are two sides of the same story.
Frequently asked questions
Which companies lead China's battery industry?
CATL and BYD are the largest, together holding a major share of global EV and storage battery output, backed by a deep upstream refining base.
What battery chemistry does China favor?
Lithium-iron-phosphate (LFP) leads for its cost and safety, especially in EVs and storage, while NMC is used where higher energy density is needed.
Why is battery refining important?
China dominates midstream refining that converts minerals into battery-grade chemicals, so refining location - more than mine location - drives cost and supply security.