Jefferies has identified two top-performing Chinese lithium battery stocks that are expected to benefit the most from the sector’s next expansion phase, driven primarily by the accelerating demand for battery energy storage systems (BESS) in 2025.
According to the report, China remains a critical anchor in the global battery supply chain, as domestic manufacturers continue strengthening their presence across both electric vehicles (EVs) and BESS technologies. Notably, Jefferies forecasts that BESS — rather than EV demand — will be the core engine of growth for the industry over the coming years.
Surging energy consumption, rapid data-center expansion fueled by artificial intelligence, and the global shift toward renewable power are key factors supporting the rise of BESS. Meanwhile, EV demand is expected to remain relatively stable, providing a consistent baseline for the broader sector.
Within this landscape, Jefferies highlights Contemporary Amperex Technology Co. Ltd. (CATL) and Wuxi Lead Auto Equipment as the two standout stocks positioned to capture the strongest upside.
CATL: Dominating Over 30% of the Global BESS Market
CATL maintains a commanding lead in the BESS segment with more than 30% global market share. The company’s next-generation high-capacity batteries — including its 314Ah and 587Ah products — reinforce its competitive edge and support expansion into key regions such as Europe and the Middle East.
However, Jefferies warns that CATL may still face several headwinds, including weakening EV sales, slower BESS deployment, rising production costs, and intensifying competition that could pressure market share.
Wuxi Lead: A Critical Supplier in the Global Battery Manufacturing Chain
Wuxi Lead, the world’s largest provider of lithium battery production equipment, plays a vital role in enabling battery manufacturers to scale capacity, enhance quality, and reduce manufacturing costs — all essential advantages amid a more competitive market landscape.
Despite its strong positioning, the company also faces potential risks, such as fluctuating global battery demand across both EV and BESS sectors, geopolitical restrictions from the U.S. targeting Chinese battery suppliers, and possible export controls from Beijing on advanced battery technologies.
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