[SMM Analysis]​​LFP Batteries Capture 82.3% Installation Share with Sustained Growth​

According to March 2025 data released by ​​the China Power Battery Industry Innovation Alliance​​（CABIA）, China's power battery installations reached ​​56.6 GWh​​ that month, ​​marking a 62.3% increase from the previous month and a 61.8% year-on-year growth​​.
​​Ternary battery installations totaled 10.0 GWh, representing 17.7% of the total.​​ This ​​reflects a 55.2% month-on-month surge but an 11.6% year-on-year contraction​​. ​​LFP battery installations stood at 46.6 GWh, capturing 82.3% of the total market, with a 63.9% monthly increase and a 97.0% annual leap​​.

In the first quarter of 2025, China's power battery installations ​​accumulated to 130.2 GWh​​, ​​achieving a 52.8% year-on-year expansion​​. ​​Ternary batteries contributed 25.0 GWh (19.2% share), down 19.0% annually​​, while ​​LFP batteries dominated with 105.2 GWh (80.8% share), surging 93.6% year-on-year​​.

In March, the top 15 Chinese power battery companies by installations were: CATL, BYD, CALB, Gotion High-Tech, EVE Energy, ​​蜂巢能源 (SVOLT)​​, ​​欣旺达 (Sunwoda)​​, LG Energy Solution, ​​瑞浦兰钧 (REPT Energy)​​, ​​正力新能 (Zenergy)​​, ​​极电新能源 (JDL New Energy)​​, ​​因湃电池 (Inpai Battery)​​, ​​多氟多 (Dofluoride)​​, ​​耀宁新能源 (Yaoning New Energy)​​, and ​​远航锦锂 (Yuanhang Jinli)​​. CATL ​​maintained its lead with 23.84 GWh installations, though its market share has declined for two consecutive months​​. BYD ​​secured second place with 13.79 GWh shipments, further expanding its market presence​​. ​​Significant shifts occurred in company rankings, despite the overall month-on-month growth in installations​​. ​​The rapid market expansion has amplified performance gaps between manufacturers​​. ​​Notably, Yaoning New Energy debuted in the top 15 list​​.

​​The LFP battery market continues to break records​​, ​​with its March installations claiming 82.3% of the total—the highest ever recorded and the second consecutive monthly gain​​.

This trend ​​is mirrored globally​​, as ​​international automakers like Tesla, Volkswagen, BMW, Mercedes-Benz, Renault, Stellantis, General Motors, and Hyundai are actively adopting or planning to implement LFP batteries​​.

​​In a strategic pivot​​, LG Energy Solution—​​formerly known for ternary battery production​​—​​has partnered with China's Longpan Technology as its LFP supplier​​. ​​The two companies amended their supply agreement to increase LFP cathode material procurement from Longpan's subsidiary Changzhou Lithium Source to 260,000 tons by 2028, up from the original 160,000 tons​​. ​​Additionally, Longpan Technology announced that its tier-3 subsidiary Lithium Source (Indonesia) will issue 255,930.64 new shares to LG Energy Solution for $15.97 million, granting LG a 20% post-issuance equity stake​​.

SMM New Energy Industry Research Department

Cong Wang 021-51666838

Xiaodan Yu 021-20707870

Rui Ma 021-51595780

Disheng Feng 021-51666714

Yujun Liu 021-20707895

Yanlin Lü 021-20707875

Zhicheng Zhou 021-51666711

Haohan Zhang 021-51666752

Zihan Wang 021-51666914

Xiaoxuan Ren 021-20707866

Jie Wang 021-51595902

Yang Xu 021-51666760

Boling Chen 021-51666836