China EV Battery Cooling Market - Strategic Insights and Forecasts (2025-2030)

Description

China EV Battery Cooling Market is anticipated to expand at a high CAGR over the forecast period.

China EV Battery Cooling Market Key Highlights

• Increasing energy density and the push for fast-charging capabilities in lithium-ion batteries directly elevate the demand for advanced liquid cooling systems to mitigate heat generation.
• Government regulations, particularly China’s GB 38031-2025 standard, compel manufacturers to integrate sophisticated thermal management systems that prevent thermal runaway, thereby creating a market imperative for robust cooling solutions.
• The high-volume production of Battery Electric Vehicles (BEVs) in China, which constituted nearly half of the global BEV stock, is the primary growth driver for battery cooling components and systems.
• The China-centric supply chain for EV batteries, which dominates the global production of key components and processed materials, provides a cost and logistical advantage that supports the rapid scaling of cooling system manufacturing.

The Chinese EV battery cooling market is undergoing a rapid transformation, propelled by the nation's strategic focus on the electric vehicle sector. The market's evolution is intrinsically tied to advancements in battery technology and the imperative for enhanced safety and performance. As battery manufacturers and automotive OEMs strive to increase energy density and reduce charging times, the management of heat becomes a critical design challenge. This environment has shifted the market from simpler cooling methods towards more complex, liquid-based thermal management systems, which are essential for maintaining the operational integrity and longevity of high-performance batteries.

China EV Battery Cooling Market Analysis

• Growth Drivers

The primary catalyst for market growth is the relentless pursuit of increased battery performance and safety. As battery makers like CATL and BYD develop higher energy density batteries to extend vehicle range, the heat generated during charging and discharging cycles intensifies. This directly increases the need for highly efficient cooling systems that can maintain the battery's optimal temperature range. The rapid expansion of fast-charging infrastructure across China further propels this demand. Fast charging introduces significant thermal stress on battery packs, and a robust cooling system is an absolute necessity to prevent overheating and premature degradation, thereby safeguarding both the battery and vehicle.

• Challenges and Opportunities

The market faces a primary challenge: the cost and complexity of integrating advanced cooling systems. Liquid cooling, while highly effective, adds to the total weight and cost of the battery pack, which can constrain adoption in more budget-conscious vehicle segments. Additionally, the risk of leakage and the need for complex maintenance protocols present engineering and service-related hurdles. However, these challenges also create opportunities. The imperative for more cost-effective and lighter cooling solutions is driving innovation in materials and system design, including research into next-generation cooling plates and hybrid cooling methods. Companies that can develop systems offering superior thermal management at a lower price point and with reduced complexity stand to capture significant market share.

• Raw Material and Pricing Analysis

The EV battery cooling market is a physical product segment dependent on a supply chain of components such as cooling plates, pumps, hoses, and coolants. The pricing of these components is influenced by raw material costs, including aluminum and other metals used in cooling plates, as well as the specialized fluids (e.g., water-ethylene glycol mixtures) used for liquid cooling. China's dominant position in the global processing and refining of key battery materials, such as lithium and cobalt, provides a foundation for the entire EV supply chain, including cooling systems. This localized control over raw material refining and component manufacturing contributes to a cost advantage, estimated to be around 20% compared to Western markets.

Supply Chain Analysis

China's EV battery cooling supply chain is characterized by a strong domestic production base. The supply chain is vertically integrated, with major battery manufacturers often collaborating directly with component suppliers. Key production hubs are concentrated in regions with high EV and battery manufacturing activity. The global nature of EV manufacturing means that while China is a dominant producer of components, there are dependencies on raw materials sourced from other countries, such as lithium from Australia and cobalt from the Democratic Republic of Congo. Logistical complexities arise from managing this global flow of raw materials into China's manufacturing centers and then distributing the finished cooling systems to domestic and international vehicle assembly plants.

Government Regulations

Chinese government regulations are a powerful demand-side catalyst. They mandate safety and performance standards that cannot be met without advanced thermal management.

In-Depth Segment Analysis

By Vehicle Type: Battery Electric Vehicles (BEVs)

The BEV segment is the most significant growth driver for advanced battery cooling systems. Unlike hybrid vehicles, BEVs rely exclusively on their battery for propulsion, subjecting the battery pack to sustained, high-power thermal loads during long-range driving and high-speed operation. The push for longer driving ranges, coupled with the consumer expectation of rapid charging, makes effective thermal management a non-negotiable design element. A BEV's battery pack, with its higher energy capacity and complex architecture, requires a sophisticated and often active liquid cooling system to ensure cell uniformity, prevent degradation, and extend the overall lifespan of the battery. This segment's growth directly correlates with the demand for highly engineered cooling plates, pumps, and thermal interface materials.

• By Cooling Type: Liquid Cooling

Liquid cooling has emerged as the dominant technology for high-performance and long-range EV batteries, particularly in China's rapidly expanding market. This method utilizes a fluid, such as a water-glycol mixture, to absorb and dissipate heat more effectively than air cooling. The superior thermal capacity of liquid allows for a more uniform temperature distribution across the entire battery pack, which is critical for maintaining battery health and preventing localized overheating. As battery energy density continues to increase, the heat generated also rises, making liquid cooling the only viable solution for maintaining safe operating temperatures. This trend is amplified by the adoption of fast-charging technology, which generates intense heat and necessitates the rapid heat dissipation capability that liquid cooling provides.

Competitive Environment and Analysis

The competitive landscape is defined by key players, including major battery manufacturers and specialized thermal management system suppliers. The market is moderately fragmented, with leaders competing on technological innovation, integration capabilities, and supply chain control.

• Contemporary Amperex Technology Co., Limited (CATL)

CATL, a global leader in EV battery manufacturing, drives demand for cooling solutions by integrating them into its advanced battery pack designs. The company's recent product introductions, such as new battery variants unveiled in September 2025, are designed for high performance and fast charging, which inherently require sophisticated thermal management. CATL's strategy is to develop and implement proprietary cooling technologies within its CTP (Cell-to-Pack) and CTC (Cell-to-Chassis) designs, ensuring seamless integration and optimized performance.

• BYD Co., Ltd.

As a vertically integrated company, BYD is a major player in both EV manufacturing and battery production. The company's development of the Blade Battery, with its emphasis on safety and structural integrity, underscores the importance of thermal management. BYD's strategy involves the in-house development of cooling systems tailored to the unique form factor and safety features of its battery packs. The company's recent announcement of a new 14.5 MWh energy storage system in September 2025, which uses a proprietary Blade Battery cell, showcases a continuous focus on thermal efficiency and high-density energy solutions.

Recent Market Developments

• September 2025: BYD announced its new "Haohan" Battery Energy Storage System (BESS), which leverages its Blade Battery technology. The system's design focuses on enhanced energy density and safety, a strategic move that reinforces the critical role of efficient thermal management in high-capacity energy solutions.
• September 2025: CATL launched two new battery models targeted at the European market at the IAA Mobility auto show. These variants include one optimized for longer lifespan and another for ultra-fast charging, both of which necessitate advanced thermal management solutions to support their high-performance characteristics.

China EV Battery Cooling Market Segmentation

BY COOLING TYPE

• Air Cooling
• Liquid Cooling
• Fan Cooling

BY BATTERY TYPE

• Lead Acid
• Lithium Ion
• Others

BY VEHICLE TYPE

• Battery Electric Vehicles
• Hybrid Electric Vehicles
• Plug-In Hybrid Electric Vehicle

Table Of Contents

1. EXECUTIVE SUMMARY

2. MARKET SNAPSHOT

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. BUSINESS LANDSCAPE

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities

3.4. Porter’s Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations

3.7. Strategic Recommendations

4. TECHNOLOGICAL OUTLOOK

5. CHINA EV BATTERY COOLING MARKET BY COOLING TYPE 

5.1. Introduction

5.2. Air Cooling

5.3. Liquid Cooling

5.4. Fan Cooling

6. CHINA EV BATTERY COOLING MARKET BY BATTERY TYPE 

6.1. Introduction

6.2. Lead Acid

6.3. Lithium Ion

6.4. Others

7. CHINA EV BATTERY COOLING MARKET BY VEHICLE TYPE 

7.1. Introduction

7.2. Battery Electric Vehicles

7.3. Hybrid Electric Vehicles

7.4. Plug-In Hybrid Electric Vehicle

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

8.1. Major Players and Strategy Analysis

8.2. Market Share Analysis

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Competitive Dashboard

9. COMPANY PROFILES

9.1. Guchen  Industry

9.2. Valeo

9.3. Zhejiang Sanhua Automotive Components Co., Ltd.

9.4. Dober

9.5.  Yinlun TDI LLC

9.6. Zhongding Group

9.7. Trumony Aluminum Limited

9.8. SONGZ

9.9. Hanon Systems 

9.10. TKT HVAC Co., Ltd

9.11. Onegene China

10. APPENDIX

10.1. Currency

10.2. Assumptions

10.3. Base and Forecast Years Timeline

10.4. Key benefits for the stakeholders

10.5. Research Methodology

10.6. Abbreviations

LIST OF FIGURES

LIST OF TABLES

Companies Profiled

Guchen Industry

Valeo

Zhejiang Sanhua Automotive Components Co., Ltd.

Dober

Yinlun TDI LLC

Zhongding Group

Trumony Aluminum Limited

SONGZ

Hanon Systems

TKT HVAC Co., Ltd.

Onegene China

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