China’s electric vehicle boom is no longer just an auto story — it’s an economic force.
New analysis shows clean energy industries drove more than 90% of China’s total investment growth last year. At the center of that surge: electric vehicles and batteries.
Together with solar and wind, these sectors generated 15.4 trillion yuan ($2.2 trillion) in 2025. That equals 11.4% of China’s GDP, up from 7.3% in 2022. In just three years, the sector nearly doubled in real value.
For the second time in three years, EVs, batteries, and renewables delivered more than one-third of China’s entire economic growth.
Without them, the country would have missed its 5% annual growth target by a wide margin.
Batteries and EVs Lead the Charge
The fastest expansion came from battery manufacturing.
China ramped up production for electric vehicles and large-scale grid storage systems. Automakers scaled output. Supply chains expanded. Investment followed.
This growth doesn’t just serve exports. Domestic demand plays a massive role. China continues to electrify transport at speed while simultaneously building out renewable energy infrastructure.
The result: EVs now sit at the core of China’s industrial strategy.
Meanwhile, exports strengthen that position. Affordable Chinese-made solar panels and EV technologies continue to reach global markets. In many developing nations, lower-cost renewables are accelerating electrification.
A Turning Point Ahead
Momentum in clean energy continues despite global trade tensions and shifting political winds.
However, coal still competes for space. Developers proposed 161 GW of new coal-fired capacity last year, and hundreds of gigawatts remain permitted or under construction.
Even so, solar generation is projected to surpass coal in China in 2026. If that milestone holds, EV adoption and battery expansion could accelerate even further.
China’s next five-year plan will clarify priorities. Yet one trend already stands out: electric vehicles are no longer just part of the transition — they are driving the country’s economic engine.
