Leading Chinese battery suppliers have been seeking opportunities outside of China since the second half of 2017, and have secured large order backlogs from overseas clients as domestic competition heats up, Fitch Ratings said in a recent report.

Global vehicle battery consumption expanded rapidly from 39 GWh in 2016 to 110 GWh in 2019, and China accounted for 57 percent of global demand, the report said.

China's vehicle battery market is likely to resume rapid growth at a compound annual growth rate of 35 percent in 2020-2025 period, according to the report.

Although industry concentration in China has been rising since 2016, competition is set to intensify, with major Asian battery makers re-entering the market after relaxed regulations. Automakers are also making efforts to diversify and internalize battery supplies, such as investments in tier-2 Chinese suppliers.

Fitch expects the market leaders to maintain their strong positions through technology leadership, long-term relationships with domestic and global automakers, and sound supply-chain management strategies.