As is well known, for a long period, around 90% of the global lithium battery market was dominated by foreign companies, particularly those from Japan and South Korea. However, today, China has taken a leading position in multiple core supply chains of the global lithium battery industry.
For example:
- China’s EV battery shipments account for roughly 56.9% of the global total.
- Energy storage battery shipments hold an 87% global share.
- Shipments of positive/negative electrode materials make up about 90% of the market.
- Electrolyte shipments contribute over 85%, and lithium-ion battery separators occupy over 80% globally.
Entrepreneurs Fueling the Industry
In this dynamic era, numerous entrepreneurs have emerged in the lithium battery sector, enduring ups and downs, driven by a spirit of determination and the pursuit of victory. Some have pursued research with the dedication of ascetic monks. Their collective efforts have helped establish the remarkable rise of China’s lithium battery industry, now capturing worldwide attention.
Clausewitz once said in On War: “Great generals light up their hearts in the vast darkness, illuminating the way forward with a faint light.”
Today, the lithium battery industry is entering a new phase of competition and reshuffling. Some analysts even warn that the industry is facing “super capacity surplus”, predicting intensifying competition and a potentially ruthless market elimination process. In recent months, industry leaders have warned about risks associated with overcapacity and extreme price wars in the EV and energy storage sectors.
The Human Factor in Industry Success
The rise or fall of a company often comes down to human factors. Leadership decisions heavily influence overall success and can even shape the industry’s future direction. Data from 2023 show that, despite fierce competition, many companies still maintain double-digit revenue growth, strengthen capital strength, expand international strategies, and continue technological breakthroughs and industrialization. This demonstrates the enduring spirit and resilience of entrepreneurs.
A Brief History of Lithium Batteries
The development of the lithium battery industry began in the late 20th century. After European, American, Japanese, and South Korean countries competed for dominance, competition became increasingly fierce. Within just a decade, China achieved qualitative breakthroughs, rising to a global leadership position.
- In 2019, Yoshino Akira of Japan won the Nobel Prize in Chemistry, recognizing decades of research since 1981, including the invention of a rechargeable battery with a polyacetylene anode and a lithium cobalt oxide cathode in 1983.
- In 1991, Sony introduced the world’s first lithium-ion battery with a cylindrical design, a lithium cobalt oxide cathode, and a carbon anode, which powered their camcorder products.
- Japan initially dominated the market, with Panasonic, Toshiba, and Sanyo leading research. By around 2000, Japan produced 90% of global lithium batteries.
However, many Japanese companies shifted focus to hydrogen fuel cell research, and the country’s lithium battery sector stagnated. South Korea quickly seized the opportunity, with companies like Samsung SDI and LG advancing rapidly, supported by government initiatives, and capturing significant market share.
By 2010, Japan and South Korea were major players, holding roughly 50% and 30% of the global market, respectively, while China was just beginning its lithium battery production and research.
China’s Strategic Rise
China entered the lithium battery sector relatively late. While Japanese lithium batteries were entering 3C products in 1992, China completed its first lithium-ion battery production line in 1997. Early on, many Chinese companies were skeptical about the future of lithium batteries. However, thanks to scholars like Chen Liquan, the “Father of China’s Lithium Batteries”, the technology gained traction.
Over the years, continuous breakthroughs have enabled China to scale production and diversify applications—from mobile phones and computers to electric vehicles, a rapidly growing frontier.
China’s advantages include:
- Control of roughly half of the world’s lithium ore resources.
- Dominance in lithium battery production, representing around 80% of global output.
- Strategic early entry into the European EV market, leveraging domestic policies, subsidies, and a growing consumer base.
These factors have propelled Chinese lithium batteries to a global leadership position in technology, market share, and supply chain management.
Challenges Ahead
Despite its success, China’s lithium battery industry still faces challenges:
- Battery standardization: Crucial for long-term industry sustainability.
- Overcapacity: Needs careful management to maintain stable growth.
China’s journey demonstrates that with strategic planning, technological innovation, and resilient leadership, the nation has transformed from a late entrant to a dominant force in the global lithium battery market.
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