2024 Battery Trends in China: The Shift Toward LFP

In 2024, China’s EV battery makers installed a total of 548.4 GWh of batteries, marking a 41.5% growth compared to 2023. Of this total, 25.3% (139 GWh) were ternary batteries, which experienced a modest 10.2% growth.

However, lithium iron phosphate (LFP) batteries dominated the market, accounting for 74.6% (409 GWh), with a significant rise of 56.7%. In Dec 2024 alone, EV battery installed capacity reached 75.4 GWh, a 57% increase from the same month in 2023 and 12.2% higher than Nov 2024.

Ternary batteries accounted for just 19% (14.3 GWh), representing a 13.4% drop compared to Dec 2023. In contrast, LFP batteries accounted for 80.9% (61 GWh), nearly doubling the previous year’s figure with an impressive 95.1% growth.

EV and battery giant BYD saw its market share grow from 15% in 2020 to 25% in 2024, rising further to 26% in Q4 2024. Meanwhile, CATL experienced a decline in Q4, with its market share shrinking to 43%.

Throughout 2024, CATL installed 256.01 GWh of batteries, while BYD reached 135.02 GWh. Of these totals, CATL’s LFP battery output amounted to 151.63 GWh, while BYD’s closely followed at 134.84 GWh.

Below is the market share of battery makers in China in 2024:

The roll-out in EV battery was also supported by a large volume of raw materials consisting of 490,000 tons of ternary battery raw components, 1.934 million tons of LFP battery components, 1.27 million tons of negative electrode materials, 16.42 billion square meters of separators, 225,000 tons of electrolyte for ternary batteries and 1.061 million tons of electrolyte for LFP batteries.

For 2024, there was a clear shift toward LFP battery adoption, driven by its lower production costs, enhanced safety features, and increasing suitability for a wide range of applications in the EV market.

Source: CarNewsChina