The global energy landscape is undergoing a fundamental transformation. As the dual engines of New Energy Vehicles (NEVs) and Energy Storage Systems (ESS) accelerate, the supply chain supporting them is evolving from simple manufacturing to high-precision engineering.

Among the most critical segments is the lithium battery precision structural component industry. These components—specifically prismatic aluminum shells, top cover assemblies, and connecting terminals—are no longer passive containers. They are active safeguards for battery safety, thermal management, and energy density.

This analysis explores the development trends, technical drivers, and competitive landscape defining this sector in 2026 and beyond.

1. Industry Development Trends: The Demand Surge

A. The Twin Engines: EV and Energy Storage Growth

The trajectory of the lithium battery market is driven by robust policy support and consumer adoption across the “Big Three” markets: China, Europe, and North America.

• NEV Market: The sector has maintained rapid growth. Data from EVTank indicates that global NEV sales surpassed 18 million units in 2024 (+24.4% YoY). This momentum continued into 2025, with first-half sales exceeding 9.4 million units, driven by the electrification of transport.

• Energy Storage (ESS): As the global energy mix shifts toward renewables, ESS has become indispensable. S&P Global Commodity Insights projects a CAGR of over 15% for global energy storage demand through 2028. While China remains a policy-driven powerhouse, emerging markets in the Middle East and Southeast Asia are creating significant new volume.

B. From “Container” to “Critical Safety Component”

As installed capacity grows, the technical requirements for structural parts have escalated. Modern battery packs in EVs and power stations require hundreds, sometimes thousands, of cells connected in series and parallel.
Consequently, structural components must perform multiple critical functions beyond simple containment:

• Energy Transmission: High-conductivity positive and negative terminals (Current Collectors).

• Safety Assurance: Precision-engineered explosion-proof valves.

• Hermetic Sealing: Absolute electrolyte containment and IP-rated sealing to prevent leakage.

• Lightweighting: Thin-wall designs that contribute to the overall energy density of the pack.

Data from SNE Research and ICC Xinyu indicates that global power and energy storage battery shipments are on track to exceed 5 TWh by 2030. This volume directly correlates to the demand for precision-stamped and laser-welded structural components.

2. The Strategic Shift: Why Battery OEMs are Outsourcing

While some giants like BYD pursue a “vertical integration” strategy, the broader industry trend sees mainstream battery manufacturers increasingly outsourcing structural components to specialized precision manufacturers. This strategic shift is driven by two key factors:

A. Cost Efficiency and CAPEX Optimization 

Battery manufacturing is capital-intensive. By outsourcing structural parts, battery OEMs can:

• Reduce Fixed Assets: Avoid heavy investment in precision stamping presses and automated laser welding lines.

• Leverage Economies of Scale: Professional component manufacturers purchase raw materials (aluminum, copper, nickel, steel) in massive bulk, securing better pricing than individual battery plants could achieve alone.

B. Technical Barriers and Specialization

Manufacturing battery housings is deceptive in its complexity. It requires micron-level mold accuracy and deep expertise in materials science.

• The Technical Moat: Professional manufacturers have spent decades refining metal forming and joining technologies.

• Focus on Core Competencies: For a battery OEM to replicate this expertise, it would require a 3–5 year R&D cycle. Outsourcing allows OEMs to focus resources on electrochemistry and BMS (Battery Management Systems) while relying on specialists for mechanical integrity.

• Agility: Specialized suppliers offer flexible production lines that can adapt to various cell specifications (prismatic, cylindrical, blade) faster than rigid in-house lines.

3. Market Size and Competitive Landscape

A clear trend has emerged: mainstream battery manufacturers are moving away from in-house production of structural parts, preferring to partner with professional manufacturers.

A. Market Valuation

The market for battery precision structural parts is expanding in lockstep with the battery industry. Data from Soochow Securities Research Institute suggests a robust outlook. With the increasing adoption of prismatic and large cylindrical batteries (like the 4680 format), the global market size for these components is projected to exceed 63 billion RMB by 2027, maintaining a year-on-year growth rate of approximately 15-20%.

B. The Competitive Arena

The landscape is currently defined by a mix of dominant leaders and agile challengers:

• Market Leaders: Companies like Kodali have established significant dominance, holding approximately 32% of the global market share (2023 data). Their scale allows for aggressive R&D and global supply chain integration.

• International Players: South Korea’s SANGSIN EDP, a primary supplier to Samsung SDI, holds a significant share (approx. 16%), representing the high standard of manufacturing required by top-tier international OEMs.

• The Challenger Tier: The market also features strong contenders such as Zhenyu Technology (approx. 10% share), Fuji Intelligence, and others who are carving out niches through specialized technologies or regional advantages.

4. Conclusion

The lithium battery precision structural component industry is moving past the phase of simple expansion into a phase of technical refinement and consolidation.

For battery manufacturers, the key to success in the coming decade will not just be securing capacity, but partnering with component manufacturers who can deliver high-precision, lightweight, and cost-effective solutions at scale. As the industry matures, the synergy between battery design and structural engineering will become the defining factor in vehicle performance and safety.

Data Sources: EVTank, S&P Global Commodity Insights, SNE Research, ICC Xinyu Lithium Battery Database, Soochow Securities.