Currently, China's battery new energy industry has entered a critical stage of profound transformation and development.
In 2024, the number and investment amount of new expansion projects in the battery new energy sector significantly decreased YoY, with some industry chain projects failing to materialize. Entering 2025, the overall pace of expansion in the battery new energy industry remains slow, but the sector is showing a new positive development trend.
According to incomplete statistics from Battery Network, in January 2025, China's battery new energy industry chain enterprises launched 21 new investment and expansion projects, with 13 projects disclosing investment amounts, totaling 37.148 billion yuan.
Although the number and amount of projects indicate cautious investment and expansion by industry chain enterprises, with no significant growth, the content of these investments reveals that top-tier enterprises are leading the way, fostering industrial clustering for mutual support. Technological competition has intensified, and industrial innovation is experiencing explosive growth. Geographically, while domestic projects are flourishing in multiple regions, overseas layouts are becoming more proactive and prudent.
Top-Tier Enterprises Leading Expansion, Industrial Clustering for Mutual Support
Currently, China's battery new energy industry chain remains in a period of deep adjustment, with a slowdown in investment and expansion. However, compared to mid-2024, top-tier enterprises have been actively expanding in recent months, signaling positive developments.
In January, top-tier enterprises such as Ganfeng Lithium, CATL, and Brunp Recycling made significant investments in large-scale projects: Ganfeng Lithium invested 4.5 billion yuan in a new energy industrial cluster project; CATL planned to build a new energy battery production line with an annual capacity of approximately 40 GWh; Brunp Recycling invested 5 billion yuan in a 450,000 mt next-generation LFP project; Shangtai Technology invested 4 billion yuan in an integrated project for 200,000 mt of lithium-ion battery anode materials; Dynanonic's LFP production project is expected to involve an investment of 285 million euros (approximately 2.148 billion yuan)...
Despite challenges such as intensified market competition and fluctuations in raw material prices, the expansion efforts of top-tier enterprises undoubtedly inject a "booster shot" into the battery new energy industry chain, while also playing a leading and driving role within the chain.
Taking CATL and Ganfeng Lithium as examples, in January, CATL signed a "Zero-Carbon City" agreement with the Fuzhou government, selecting the Fuzhou Taiwan Merchants Zone as the site for a 40 GWh battery base. This project is expected to drive the development of the entire new energy industry chain, with 29 supporting projects already implemented, involving a total investment of 11.5 billion yuan, initially forming a new energy supporting industry chain. Ganfeng Lithium's new energy industrial cluster project spans from lithium mining and refining to battery material production and battery manufacturing, forming a complete industry chain.
Such industrial clustering effects have attracted numerous small and medium-sized enterprises to engage in supporting production, enabling the industry to achieve "mutual support" during the deep adjustment period. This also promotes efficient resource utilization and enhances overall industry efficiency.
Solid-State Batteries Gaining Momentum, Major Breakthroughs Continue
On one hand, investment and expansion foster mutual support; on the other hand, market competition remains intense. However, the focus of competition seems to have shifted from price wars to technological breakthroughs.
Solid-state batteries, recognized as the ultimate battery technology in the industry, accounted for a significant portion of the newly announced projects in January: among the seven battery projects included in the statistics, three were related to solid-state batteries, with a total investment of 10 billion yuan.
Regarding the current state of solid-state battery development, a joint report by EVTank, the Yiwei Economic Research Institute, and the China Battery Industry Research Institute, "China Solid-State Battery Technology and Industrialisation Development Status and Trend Research Report (2025)," revealed that after years of R&D and pilot testing, China's solid-state battery products have achieved continuous breakthroughs in individual performance indicators. Industry-disclosed samples of all-solid-state batteries have achieved an energy density exceeding 700 Wh/kg, a cycle life of over 3,000 cycles, and a charge rate of 5C, solidifying the technological foundation for the industrialisation of solid-state batteries.
From an industrialisation perspective, EVTank's data shows that China's semi-solid-state battery shipments exceeded 3 GWh in 2024, while all-solid-state batteries remain in the sample and pilot testing stages. EVTank concluded that solid-state batteries are rising with unstoppable momentum, becoming a new battleground in the new energy sector.
In January, companies such as Hubei Juyuan Power and Innobase invested in solid-state battery projects, reflecting the industry's strong expectations for technological breakthroughs and industrial applications of solid-state batteries. By planning ahead, these companies aim to gain a competitive edge in the future high-performance battery market and lead technological development trends.
Additionally, in January, several companies and research teams announced significant progress in the solid-state battery field:
Del shares reached a major milestone in solid-state battery R&D, completing sample trial preparations for its Shanghai pilot line; Shanghai Xiba completed the design of high-specific-energy solid-state pouch lithium-ion batteries, which have entered small-scale production, with products awaiting quality inspection before testing; the team led by Quanquan Pang from the School of Materials Science and Engineering at Peking University developed a new glass-phase sulphide solid electrolyte material, using it to create high-performance all-solid-state lithium-sulfur batteries with fast charging and ultra-long cycle life...
Global Layout Trend Unchanged, Joint Ventures and Partnerships Becoming the Norm
While pursuing technological breakthroughs, the trend of going global remains unchanged: in January, REPT Battero began constructing a battery plant in Indonesia with an expected annual capacity of 8 GWh; GEM partnered with ECOPRO to establish a project in Indonesia for 200,000 mt of precursor and cathode materials annually; Dynanonic collaborated with ICL to build an LFP production project in Saliente, Spain, with a total investment of 285 million euros; Silex began constructing a battery structural component production line in the US.
On January 21, CATL's Co-Chairman Jian Pan stated at the Davos Forum that CATL announced in December 2024 a joint venture with Stellantis to establish a power battery plant in Spain, and is expected to announce new joint venture projects with other OEMs in Europe this year. Currently, CATL has established three battery plants in Europe, including the Spanish joint venture plant.
It can be said that going global has become an important strategy for battery new energy companies to seek new markets and resources. However, amid an increasingly complex international political environment, companies are adopting more cautious and prudent approaches to overseas investments, favoring joint ventures and partnerships.
In January, REPT Battero's Indonesian battery plant was planned through its non-wholly-owned subsidiary PT REPT BATTERO INDONESIA, with the company holding a 60% stake; GEM's integrated cathode material project in Indonesia was planned in collaboration with South Korea's ECOPRO, combining "resources, capital, and technology"; Dynanonic's LFP production project in Spain was planned to gain a 20% stake in the project company through additional investment with Amsterdam Fertilizers; Silex's US production plan for square and cylindrical battery shells involved introducing partners to establish a new holding subsidiary for investment and construction...
Joint ventures and partnerships not only help mitigate risks but also leverage local resources and market expertise to accelerate business implementation and achieve effective and rapid development.
Taking REPT Battero and GEM's Indonesian projects as examples, Indonesia's abundant nickel, cobalt, and other battery raw material resources enable these projects to fully utilize local resources, ensuring stable raw material supply and reducing production costs. While REPT Battero aims to expand into the Southeast Asian market, GEM stated that it will jointly expand the project market targeting South Korea, Southeast Asia, Europe, and the US to maximize strategic benefits for both parties.
Conclusion:
While the trend of investment and expansion projects is evident, delays or terminations of battery new energy projects are also being reported, signaling that competition and industry reshuffling have entered a critical phase.
In this crucial period, technological innovation remains the core driving force for industry development. Beyond solid-state batteries, emerging technologies such as sodium-ion batteries are also advancing, with deeper research expected to achieve greater breakthroughs in performance and cost, bringing more possibilities to the battery new energy industry.
Looking ahead, although the battery new energy industry faces challenges, it also holds immense opportunities. Under the leadership of top-tier enterprises, through technological innovation, industrial collaboration, and global layouts, the industry is expected to emerge from the deep adjustment period into a new phase of growth. Companies that can keenly capture market changes, continuously innovate, and actively address challenges will stand out in this fierce competition, becoming the backbone driving industry development.
