China’s lithium battery industry is experiencing explosive growth in international markets, with exports jumping 36.4% in the first three quarters of 2026. The surge reflects a fundamental shift in strategy: Chinese battery makers are moving beyond simple product exports to establishing manufacturing plants and long-term service operations overseas.
Customs data released on October 14 reveals a reshuffled global landscape. While U.S. exports declined 24% in the first eight months, this loss was more than offset by approximately 53% growth in European, Asian, and emerging markets. The strategic rebalancing underscores how Chinese companies are adapting to geopolitical tensions and finding new opportunities outside North America.
Market Share Consolidation in China’s Favor
CATL, China’s battery giant, has expanded its share of non-Chinese power battery markets from 29% to 33.7% in the first eight months, driven by steady European growth and rapid expansion in Asia. Meanwhile, South Korea’s major battery producers—LG Energy Solution, SK On, and Samsung SDI—have seen their combined overseas share plummet from 37.9% to 26.8%, largely because of weakening demand in North America.
The second tier of Chinese manufacturers is advancing rapidly. Gotion High-tech’s overseas share doubled to 4%, now surpassing Samsung SDI, while EVE Energy climbed from 0.9% to 2.1% and entered the top ten. BYD presents an interesting case: its global power battery share declined domestically, but its overseas share surged from 8.2% to 11%, driven by own-brand vehicle exports.
From Supply Contracts to Joint Ventures
The most significant evolution is how Chinese battery makers are engaging with international partners. Rather than simply exporting finished products, companies are now investing in local manufacturing and operational support.
Volkswagen and Gotion High-tech are advancing a joint venture for a Spanish lithium iron phosphate plant with approximately €1.1 billion in investment, with Gotion acquiring a 49% stake. This arrangement reflects Volkswagen’s recognition that Europe lacks sufficient local production capacity for mainstream-priced electric vehicles. Such partnerships require Chinese makers to contribute not only manufacturing expertise but also substantial capital to build regional supply chains.
Energy Storage Creates New Growth Avenues
The energy storage sector has opened a separate expansion pathway for Chinese companies, with CATL, EVE Energy, BYD, Hithium, and Great Power dominating overseas shipments. Overseas residential storage demand has particularly benefited EVE Energy and Great Power, while Hithium specializes in large-scale utility projects and ranks second globally in utility-scale storage cell shipments.
These relationships generate repeat orders. BYD’s customer Grenergy recently purchased additional energy storage systems for a Chilean project, while CATL’s partnership with ContourGlobal spans three countries and now includes degradation management and battery recycling services.
Rising Service and Capacity Demands
As overseas operations expand, Chinese battery makers face growing obligations for local installation, maintenance, and technical support. Hithium’s Australian project requires local delivery and commissioning, while Rept Battero’s Japanese operations demand ongoing acceptance testing and maintenance services. Sungrow Power Supply committed to 98% system availability in European contracts—commitments that demand sustained overseas infrastructure.
Plant construction progress remains uneven. Sunwoda’s Thailand facility has begun production, and CATL’s Hungarian cell plant entered trial production. However, EVE Energy’s U.S. project faces delays due to shifting demand forecasts for electric commercial vehicles, illustrating how overseas investments remain vulnerable to market fluctuations.
The Real Challenge Ahead
The industry’s expansion now hinges on capability beyond manufacturing: Chinese battery makers must demonstrate the financial capacity and operational expertise to support complex, long-term partnerships with multinational customers. As companies deepen ties with overseas developers and automakers, they are effectively sharing investment risk and must carefully evaluate customers’ expansion strategies as if they were their own business decisions. This transformation from exporter to integrated partner may ultimately define success in global battery markets more than export volume alone.
