Long-term Sustainability Outweighs Speed As the global energy transition accelerates, the lithium-ion battery industry has stepped into a new phase of "system competition," where comprehensive capabilities in technology standards, intellectual property (IP), and localized operations have replaced pure production capacity as the key to success. In 2025, with electric vehicle (EV) penetration surging past critical thresholds and energy storage demand expanding exponentially, the industry consensus is clear: "going far" matters more than "going fast" in the global marketplace.
The reshaping of global supply chains has become a defining feature of this new era. Regulatory frameworks such as the EU’s revised Battery Regulation (70% local content requirement) and the U.S. IRA Act (80% domestic critical mineral sourcing mandate) have forced enterprises to shift from standalone product exports to integrated regional layouts. CATL’s $5.9 billion Indonesia project, a joint venture with local state-owned enterprises, covers the entire value chain from nickel mining and smelting to battery production and recycling, capable of powering 300,000 EVs annually. Meanwhile, EVE Energy and Singyes New Materials have expanded their Malaysian bases, attracting upstream suppliers of electrolytes, separators, and anode materials to form regional industrial clusters. This collaborative model not only mitigates trade barrier risks but also transforms China’s scale advantages into sustainable competitive edge through reduced logistics costs and enhanced technical synergy.
Intellectual property and technical standards have emerged as core battlefields in system competition. Korean-Japanese patent pool Tulip Innovation has initiated lawsuits against three Chinese battery firms, including Sunwoda, highlighting the growing importance of IP protection in overseas expansion. Leading enterprises have responded proactively: CATL has built a portfolio of over 45,000 patents worldwide, including 18,000+ overseas filings, generating $430 million in IP licensing revenue in 2024 alone. Beyond IP defense, Chinese companies are striving to lead international standard-setting, promoting technologies like lithium iron phosphate (LFP) batteries as global benchmarks to break through technical barriers in Europe and the U.S.. This "IP + standards" dual-drive strategy has become essential for long-term market access and value capture.
Technological innovation and scenario diversification are reinforcing systemic competitiveness. 2025 marks the commercialization of all-solid-state batteries (ASSBs), with CATL and Toyota launching small-batch installations featuring energy density exceeding 400Wh/kg, while semi-solid-state batteries have achieved cost parity below $0.015/Wh. In energy storage, global wind-solar paired storage ratios have reached 25%, with China’s new energy storage installations surpassing 80GW and European household storage averaging 15kWh per household. Equipment suppliers like Winhe Technology are adapting to regionalization trends by delivering customized solutions to major battery plants in Malaysia and Hungary, integrating AI-powered quality control systems to enhance production consistency across global facilities.
Industry analysts emphasize that system competition in the lithium battery sector is ultimately a contest of ecological resilience. Enterprises must balance technological innovation, supply chain flexibility, regulatory compliance, and local adaptation to thrive globally. As carbon tariffs and geopolitical tensions reshape trade dynamics, building a integrated global system encompassing technology, manufacturing, and services has become the only path to sustainable success. The race is no longer about who expands fastest, but who can establish the most robust and adaptive ecosystem for long-term growth.
