China's new energy sector delivered another quarter of impressive growth in Q1 2025, reinforcing its position as the global leader in clean energy manufacturing, deployment, and innovation. This financial data review examines the key metrics across the solar, wind, EV, and battery value chains.
Solar Manufacturing: Capacity and Margins
China's solar module production reached 185 GW in Q1 2025, up 28% year-on-year. Polysilicon prices stabilized at RMB 65-75/kg after a prolonged decline, improving margins for integrated manufacturers. Leading solar companies reported average gross margins of 18.5%, up from 14.2% in Q4 2024. Export value of solar products reached $12.8 billion, with Southeast Asia and Middle East emerging as key growth markets.
Wind Power: Installation Surge
New wind power installations totaled 28 GW in Q1, a 35% increase from Q1 2024. Offshore wind accounted for 6.5 GW, driven by large-scale projects in Guangdong, Jiangsu, and Fujian provinces. Turbine prices continued to decline, with average selling prices dropping 12% to RMB 1,350/kW, pressuring manufacturer margins but accelerating project economics.
EV Sales: Record Quarter
China's new energy vehicle (NEV) sales reached 2.5 million units in Q1, representing 42% of total vehicle sales. Battery electric vehicles (BEV) accounted for 1.6 million units, while plug-in hybrids (PHEV) reached 0.9 million. BYD maintained market leadership with 32% share, followed by Tesla China at 8.5%. Export of NEVs grew 45% to 380,000 units.
Battery Supply Chain: Technology Evolution
Power battery installations reached 185 GWh in Q1, up 32% year-on-year. CATL maintained 45% market share, while BYD's FinDreams battery held 28%. Lithium carbonate prices averaged RMB 95,000/ton, down 12% from Q4 2024, benefiting battery manufacturers. Solid-state battery pilot production commenced at two major manufacturers, signaling the next technology inflection point.
Investment and Financing
The sector attracted RMB 180 billion in new investment during Q1, with 45% directed to battery manufacturing, 30% to solar, and 15% to EV production capacity. IPO activity remained subdued, but private equity and venture capital investments increased 22% year-on-year, focusing on next-generation technologies.
