Advanced Manufacturing 2025: China’s New Energy Production and Sales Increase, Accelerating Power Battery Exports
In January 2025, China’s new energy vehicle (NEV) industry continued its trend of high-quality development, with production reaching 1.015 million units and sales hitting 944,000 units, reflecting year-on-year increases of 29% and 29.4%, respectively. This growth is driven by a combination of targeted policies, accelerated technological advancements, and efficient infrastructure expansion, leading to a continuous expansion of the industry scale.
Among the various models, pure electric vehicles (EVs) retained their dominant position, with production and sales reaching 635,000 units and 574,000 units, respectively, marking year-on-year growth rates of 29.7% and 29.1%. Plug-in hybrid electric vehicles (PHEVs) saw production and sales of 380,000 units and 370,000 units, with year-on-year increases of 27.8% and 30%.
Synergistic Growth of Dual Technology Paths
In January 2025, China exported 150,000 NEVs, including 100,000 pure electric vehicles, which represents a year-on-year increase of 22%. The traditional core markets experienced steady growth. PHEV exports reached 50,000 units, benefiting from the EU’s new carbon emission regulations and the competitive advantages of hybrid technology, reflecting a year-on-year increase of 170%. This creates a synergistic development model characterized by “pure electric as the foundation, and hybrid breaking through” — where pure electric vehicles consolidate the existing market, while hybrids, with their highly adaptable products, accelerate market expansion.
Power Battery Industry Continues to Expand
The power battery industry in China is steadily advancing, with a significant increase in both market application and popularity. In January 2025, the installed capacity of power batteries reached 38.8 GWh, marking a year-on-year growth of 20.1%. The market is showing structural differentiation. From a technological standpoint, the volume of ternary batteries installed saw a decline of 32.2% due to fluctuations in raw material prices and a temporary reduction in demand for high-end models. In contrast, lithium iron phosphate (LFP) batteries boasted an installed capacity of 30.2 GWh, a remarkable year-on-year increase of 53.5%, particularly gaining traction in the mid-to-low-end passenger vehicle and commercial vehicle sectors. This leads to a competitive landscape defined by “LFP expansion and ternary refinement.”
Steady Growth in Battery Exports
In January 2025, China’s power battery exports reached 11.1 GWh, reflecting a year-on-year growth of 9.1%. This steady increase is attributed to three main drivers: first, the rapid penetration of overseas NEV markets; second, the expansion of global production capacities by leading domestic firms; and third, the competitive edge of LFP systems, which are accelerating the replacement of ternary batteries in the European commercial vehicle and consumer markets. The Chinese power battery industry is leveraging technological innovation as its driving force, enhancing its internationalization efforts through global capacity arrangements.
