China EV Battery Cooling Market is anticipated to expand at a high CAGR over the forecast period.
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.
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.
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.
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.
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.
Chinese government regulations are a powerful demand-side catalyst. They mandate safety and performance standards that cannot be met without advanced thermal management.
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Jurisdiction |
Key Regulation / Agency |
Market Impact Analysis |
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China |
GB 38031-2025 (Safety Requirements for Traction Battery) |
This regulation, taking effect in July 2026, prohibits battery packs from catching fire or exploding after a thermal runaway event, creating a direct regulatory demand for robust and fail-safe cooling systems that can contain or prevent such events. |
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China |
Ministry of Industry and Information Technology (MIIT) |
MIIT promotes new energy vehicle (NEV) adoption through subsidies and tax relief, which stimulates overall EV production and, by extension, the demand for all critical components, including cooling systems. |
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.
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.
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.
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.
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.
| Report Metric | Details |
|---|---|
| Growth Rate | CAGR during the forecast period |
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Segmentation | Cooling Type, Battery Type, Vehicle Type |
| Companies |
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BY COOLING TYPE
BY BATTERY TYPE
BY VEHICLE TYPE