Japan and South Korea Recede, Chinese Enterprises Rise! How to Strategize the Cylindrical Battery Game?

In the diversified landscape of lithium batteries, cylindrical, prismatic, and pouch batteries each have their own advantages. Among them, cylindrical batteries, as the earliest type of lithium battery to achieve mass production, have always held a significant position in the industry due to continuous technological innovation and market adaptability. Cylindrical batteries, driven by innovation, are reshaping the industry landscape. The birth of cylindrical batteries stemmed from the perfect alignment of technology and market demand. In the late 20th century, with the surge in demand for lightweight and efficient power sources in portable electronic devices, Sony seized the opportunity and introduced the revolutionary 18,650 cylindrical battery, quickly leading the trend in the consumer electronics market. With their excellent performance, cylindrical batteries soon became mainstream in the industry, driving the rapid development of consumer electronics towards miniaturization, lightweight design, and extended driving range. During the early stages of EV industrialization, cylindrical batteries also became a key driving force due to their unique advantages. In 2008, Tesla's first electric sports car, the Roadster, innovatively adopted a combination of nearly 7,000 18,650 lithium batteries, showcasing the excellent product consistency, mature manufacturing processes, and outstanding cost advantages of cylindrical batteries. This move successfully helped Tesla open the door to EV commercialization, laying a crucial foundation for the global NEV industry's transition from concept validation to large-scale development. Despite their significant role in the early development of the electronic device and NEV markets, the market expansion of cylindrical batteries has not been without challenges. In the NEV market, as consumer demand for driving range continues to rise, higher requirements for battery energy density have emerged, coupled with demands for battery pack space utilization and manufacturing efficiency. As a result, the advantages of prismatic and pouch batteries have gradually become more prominent. In the ESS market, large-scale ESS projects impose extremely high requirements on cost control and system integration management, slowing the promotion of cylindrical batteries in this market. However, even so, cylindrical batteries have not stood still but have actively sought innovation and change to reshape the industry landscape. Leading companies have invested heavily in R&D, continuously exploring the boundaries of performance in material innovation and structural optimization. Among them, Shenzhen BAK Power Battery Co., Ltd. (referred to as BAK Battery), a pioneer and leader in the global cylindrical lithium battery industry with over 20 years of experience, has deeply explored the core advantages of cylindrical batteries. Through a three-dimensional reconstruction of "application scenario innovation + material system upgrade + structural design optimization," BAK has achieved industry-leading technological results. Recently, research institutions EVTank and the EVI Economic Research Institute, in collaboration with the China Battery Industry Research Institute, jointly released the "China Cylindrical Battery Industry Development White Paper (2025)." The white paper disclosed the top 10 global cylindrical lithium-ion battery shipment companies in 2024. BAK Battery made the top 10 list, ranking seventh globally in cylindrical lithium-ion battery shipments in 2024. Strong growth in traditional application markets continues to boost the demand for cylindrical batteries. EVTank data shows that global cylindrical battery shipments reached 12.82 billion units in 2024, up 3.6% YoY. Among them, cylindrical battery shipments for power tools increased by 25.4% YoY, while those for electric two-wheelers rose by 34.6% YoY. In terms of market structure, against the backdrop of varying degrees of decline in cylindrical battery shipments by Japanese and South Korean companies, Chinese companies achieved counter-trend growth. The market share of Chinese companies in the global cylindrical battery market surged from 29.3% in 2023 to 43.6% in 2024, demonstrating strong market competitiveness. EVTank analysis indicates that the more prominent cylindrical battery companies in 2024 mainly seized opportunities in the small power market in Southeast Asia, the domestic substitution of power tool batteries, and the overseas household ESS market. Additionally, EVTank pointed out that Chinese companies are also leading the industry in exploring new application scenarios for cylindrical batteries, such as BBU backup power, AI robots, eVTOL, and biomedical applications. "Scenario + Material + Structure" Three-Dimensional Reconstruction! Building a Comprehensive Product Matrix The rise of emerging application markets has opened up vast development space for cylindrical batteries. Recently, Liu Zhibo, Executive Vice President of BAK Battery, noted in an exchange with Battery Network that the combination of cylindrical and ternary batteries, with their high C-rate discharge characteristics, perfectly meets the needs of recent hot industries. Liu Zhibo analyzed that in the low-altitude economy sector, aircraft impose unprecedented stringent requirements on power batteries. First, in terms of energy density, they need to meet the MIIT aviation lithium battery standard target of 400-500 Wh/kg, far exceeding the average of 200-300 Wh/kg for ordinary vehicle lithium batteries. Second, in terms of power performance, the instantaneous power required for vertical takeoff and landing demands that batteries can sustain 3-5C discharge and peak at 7-10C discharge, while also requiring fast charging capabilities. Additionally, the recently popular embodied intelligent robot industry and AI data center battery backup units (BBUs) also pose dual challenges to battery performance: requiring both breakthrough energy density and excellent power output capabilities. In the embodied intelligent robot industry, batteries need to be compactly adapted to the robot's body. Cylindrical batteries, with their standardized size and flexible layout, have become the preferred power solution for the robot industry. Combined with the continuously improving energy density performance of cylindrical batteries, they meet the core needs of the embodied intelligent industry for compact design, lightweight body, and long driving range. "The cylindrical structure has good heat dissipation performance and is suitable for modular design, which aligns with the high efficiency and modularity required by AI data center BBUs," Liu Zhibo further analyzed. "Moreover, cylindrical batteries use steel shell encapsulation, offering high mechanical strength and superior resistance to collision and compression compared to prismatic or pouch batteries, making them suitable for high-vibration, high-impact application scenarios such as low-altitude aircraft and robots." In terms of technological innovation, BAK Battery has also achieved remarkable results. In the field of structural innovation, the full-tab technology has brought new ideas for the performance renewal of cylindrical batteries and provided a key code for BAK Battery's business innovation. BAK Power Battery is a pioneer in the field of full-tab large cylindrical batteries, achieving the domestic debut of the 4,680 full-tab large cylindrical battery as early as the beginning of 2021, leading the industry in technology layout and R&D progress. The cylindrical structure, combined with advanced technologies such as high-nickel cathodes, silicon anodes, and silicon-doped lithium supplementation, has significantly improved energy density. Liu Zhibo revealed that BAK Power's full-tab large cylindrical batteries have now iterated to the third generation. The full-tab large cylindrical technology has also brought a positive "feedback" effect to the small power market. In March 2024, BAK Battery released a new generation of full-tab small power battery products: 2,170-40D, 2,170-45D, and 2,170-50D. This series targets three major sub-markets: smart living, power tools, and micro-mobility, showcasing six characteristics: high power, low internal resistance, low temperature rise, fast charging, long cycle life, and high capacity. Additionally, in March 2025, BAK Battery officially launched the full-tab 1,865 D series products, achieving comprehensive performance upgrades and leading user experience to new heights. At this point, BAK has officially formed a full-tab full-matrix cylindrical battery product system covering the 18-series, 21-series, and 46-series. Liu Zhibo stated, "The strategic value of this product system lies in its comprehensive scenario adaptability: whether in the EV field with extremely high energy density requirements or in the small smart device field with special power and size requirements, BAK Battery's full-tab products can meet the diverse needs of mobile end-use products with their excellent performance, effectively driving the transformation and upgrading of smart lifestyles." In the field of material innovation, BAK Battery has also made significant breakthroughs. On February 25, BAK Battery officially launched the PRO-M high-safety battery, which meets the requirements of the new national standards while achieving dual upgrades in safety and performance, aiming to provide a more reliable and efficient energy solution for short-distance travel. In terms of materials, the new generation of BAK PRO-M high-safety battery innovates from the cathode, separator to the electrolyte, providing triple protection and improving the battery's safety performance: using a composite cathode with excellent thermal stability, maintaining structural stability at high temperatures; using a composite-coated separator to maintain good insulation; and using a highly stable electrolyte to effectively reduce interfacial side reactions. In terms of process, BAK has developed a new process that makes the slurry more dispersed and the internal resistance smaller, achieving high safety, high capacity, long driving range, and wide temperature range performance. The BAK PRO-M high-safety battery can pass the industry's most stringent nail penetration test, meeting the safety performance requirements of GB43854-2024 and GB40559-2024. In product layout, BAK Battery has always adhered to a market demand-oriented development philosophy. Liu Zhibo introduced: Based on deep insights into sub-markets, we have built a complete product matrix in the cylindrical battery field, including high-capacity series, high-power series, and high-safety series, comprehensively covering mainstream specifications such as 18/21/46 series, providing precise energy solutions for different application scenarios. Conclusion: Throughout the development history of the lithium battery industry, cylindrical batteries not only drove the transformation of the consumer electronics industry in the early stages and helped the EV industry take its first steps, but also continuously innovated and adapted in the face of challenges, witnessing the evolution of lithium battery technology and changes in market demand, always occupying an irreplaceable important position in the development process of the lithium battery industry. With the advent of the AI wave, cylindrical batteries, as the "evergreen tree" of the lithium battery industry, have ushered in new development opportunities. In the industrial context of continuously emerging diversified application scenarios, the high C-rate and standardized characteristics of cylindrical batteries have become hard currency in market competition. BAK Battery, with its continuous investment and leading achievements in technological innovation, as well as its precise grasp of market trends, has occupied significant technological advantages and a solid market position in the cylindrical battery market.