China is moving to combine its global dominance in two different domains, namely battery technology and shipbuilding, to overhaul its shipping fleets.
China’s Shipbuilding Industry
In 2024, China secured 71% of all new global shipbuilding orders. By 2025, it held 53% of the global market share.
China currently operates over 300 shipyards. And its capacity is roughly 232 times that of the US, allowing it produce more commercial tonnage in a year than the US has built since WWII.
China’s Battery Industry
China dominates the global battery supply chain, manufacturing over 70% of all lithium-ion batteries. It commands over 60% of the EV battery market currently.
Three reasons why it makes sense for China
One, this will support China’s clean energy transition. China has vowed to peak its carbon emissions by 2030 - just four years from now - and has committed to become carbon neutral by 2060. In this light, moving towards greener shipping fleets is a significant step.
Two, China’s EV industry and battery are facing a pushback in the external market owing to industrial overcapacity at home. This moves allows China’s battery industry to find a new market for its products, thereby combating involution as well.
Three, if China manages to combine these two strengths - it will consolidate and extend China’s dominance in the global shipbuilding industry. At some time, the global shipbuilding industry has to move towards clean energy. And when the world makes that transition, China will be ready to meet the global demand.