China’s Battery Exports Surge as War Drives Energy-Supply Crunch

(Bloomberg) -- China’s lithium battery exports surged in the first quarter, reinforcing early signs of demand for alternative power sources to counter the global energy-supply crunch arising from the war in the Middle East.

The 50% year-on-year jump for the three months ended March 31 was likely also driven by the front-loading of shipments before the phasing-out of an export-tax rebate. The rate was cut to 6% from 9% from April 1 and China will scrap the rebate entirely from next year.

The rise in battery shipments was accompanied by double-digit percentage growth in exports of other green technologies, including electric vehicles and wind turbines, said Wang Jun, deputy director of China’s General Administration of Customs.

“These new growth drivers for exports continued to gain momentum in the first quarter,” Wang said at a briefing on Tuesday. He did not give a reason for the increase.

While battery exports were already trending higher, the first-quarter data marked an acceleration from growth of 26% for full-year 2025.

The war in Iran overlapped with only the final month of the quarter, but the severe and ongoing disruption to global fuel supplies has made energy security a more urgent issue for import-dependent nations. Chinese battery makers, already a dominant force across the supply chain, stand to be among the biggest beneficiaries.

Some companies have already reported a positive impact from this shift. Last week, Ningbo Deye Technology Co., a major battery storage manufacturer, said its profit for the first quarter is likely to increase by as much as 70%, with a notable increase in orders from Europe, the Middle East and Southeast Asia.

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