What happened
At a Sept. 4 international symposium at the 2026 World Power Battery Conference, Su Bo, former vice minister of industry and information technology, outlined the scale of China's battery industry. Global power battery installations reached 1,187 GWh in 2025, up 31.7%, and six Chinese firms among the global top 10 shipped 835.7 GWh, claiming 70.4% of the market. In the first half of this year, China exported 181.3 GWh of power and storage batteries, up 42.5%, equal to 18.5% of total sales. Su said the industry must now move from product exports to a coordinated 'industrial system' approach, tailoring strategies for mature markets such as Europe and the U.S. and emerging markets across Southeast Asia, the Middle East and Latin America.
Executives described rising cooperation between rivals. Li Xiaoyun, president of SK On China, noted that Chinese and Korean battery makers have long competed, with Korea focused on ternary chemistries and China on lithium iron phosphate. But as Europe raises requirements on carbon footprint, traceability, labour and environmental standards, and the U.S. restricts some Chinese battery firms, Li said SK On is exploring joint production, technology cooperation and product development with Chinese partners in Europe. He advised Chinese firms to integrate compliance early into investment decisions and acknowledged that SK On's more than 200 GWh of European capacity is partly idle, inviting Chinese cooperation.
Materials suppliers are also rethinking globalisation. A vice president at a Shenzhen-based battery materials producer described manufacturing footprints in Sweden, Malaysia and the U.S., along with local engineering teams, to improve supply-chain resilience. An Evonik executive said materials companies should join battery development earlier and manage risks across borders, while an official from copper-foil maker Nuode cited the need to embed carbon-footprint and clean-production requirements into processes. Farasis Energy's R&D and overseas business vice president argued that Chinese firms must convert accumulated manufacturing experience into replicable industrial systems, rather than relying on a one-size-fits-all product. After he mentioned using AI to accelerate development, Dong Yang, chairman of the China Automotive Power Battery Innovation Alliance, cautioned that AI cannot assume liability for battery safety and that drastically cutting development cycles could be risky.
Why it matters
The conversation signals a more complex stage of globalisation: selling products abroad is no longer enough. Companies must navigate distinct regulatory regimes, build local supply chains, and tailor products to regional climates and customer demands before they can meaningfully enter a market.
The emerging cooperation between Chinese and Korean battery rivals may reshape the industry landscape. Regulatory pressure and excess European capacity are pushing former competitors toward shared production and development, potentially altering how global capacity is deployed.
The debate over AI in battery development highlights a broader tension. Companies are chasing speed and efficiency, but industry leaders are reminding them that safety and accountability cannot be shortcut. How the industry balances rapid iteration with rigorous testing will be critical.
Key facts
Global power battery installations reached 1,187 GWh in 2025, up 31.7% year on year.
Six Chinese companies in the global top 10 shipped 835.7 GWh in 2025, or 70.4% of the global market.
In the first half of 2026, China's power and energy storage battery exports totalled 181.3 GWh, up 42.5% and representing 18.5% of total sales.
SK On China said SK On has more than 200 GWh of capacity in Europe, with some currently idle.
Copper accounts for around 70% to 80% of copper-foil cost, according to an official at Nuode.
What to watch next
Whether 'industrial-system going overseas' materialises as joint ventures or strategic alliances, particularly between Chinese and Korean companies in Europe and across next-generation solid-state batteries.
How Chinese companies respond to Europe's evolving carbon-footprint and traceability rules, and whether they treat these rules as barriers or opportunities as some European officials suggest.
How the industry manages the push for AI-accelerated development without compromising battery safety and liability frameworks.