Post by Roland Berger

China's battery market is consolidating and the rules of competition are changing. By 2030, the top 10 OEMs are expected to control over 70% of the market. CATL and BYD will continue to dominate battery supply. The pressure on mid- and lower-tier suppliers is only intensifying. Five structural shifts are now underway: 1️⃣ Supply chain diversification OEMs are actively developing Tier-2 battery suppliers to reduce dependency on any single source. 2️⃣ Battery-first strategy To maintain supply chain autonomy, OEMs are combining deep partnerships with leading battery makers alongside growing in-house R&D capabilities. 3️⃣ Demand bifurcation The market is splitting : some OEMs will pursue customized, high-performance cells (NCM, SSB, 4C/5C fast-charging); others will prioritize cost efficiency through standardized solutions. 4️⃣ A low-margin environment here to stay Even top-tier battery suppliers face pressure on profitability with certain OEM customers. Leading players are responding by expanding into OEM enablement services, technology upgrades, and aftersales ecosystems. 5️⃣ Regulators are stepping in Mining license suspensions and tightened whitelist certification requirements are being deployed to curb oversupply and stabilize margins. 📖 Explore the full insights on China's battery market: https://lnkd.in/eJBkkGvp #RolandBerger #BatteryMarket #EV #EnergyStorage #AutomotiveIndustry #BatteryPulse Shuai Shi