China’s electric vehicle (EV) sector is witnessing a powerful shift toward lithium iron phosphate (LFP) batteries, which in March accounted for 82.3% of all EV battery installations—surging 97% year-on-year. According to the China Automotive Power Battery Industry Innovation Alliance (CABIA), LFP installations reached 46.6 GWh, significantly outpacing the 10 GWh registered for traditional ternary batteries, which declined 11.6% over the same period.
Overall power battery installations in March totaled 130.2 GWh for the year to date, a 61.8% increase from 2023. LFP batteries dominated new EV deployments with an 80.8% market share, driven by their cost-effectiveness despite lower energy density compared to ternary lithium-ion batteries. Chinese giants like CATL and BYD continue to refine LFP technology, fueling its domestic dominance and global reach.
CABIA reports battery sales rose 46.9% year-on-year to 87.5 GWh, while exports saw a modest 11.3% gain to 13.9 GWh amid slowing global demand. Total battery output, including energy storage systems, climbed 54.3% in March to 118.3 GWh, reaching 326.3 GWh in Q1 2025—up nearly 75%. Meanwhile, China’s passenger EV retail sales grew 38% in March to 991,000 units, pushing market penetration to 51.1%.
