New Energy Vehicle Patents Grow by an Average of 17.1% Annually!

China has held the top spot in global automotive patent publications for ten consecutive years, with its share reaching 35.6 percent of the world total as of May 2026. The new energy vehicle sector has been the main driver, posting an average annual growth rate of 17.1 percent in patent publications between 2016 and 2025. These figures are widely cited by industry associations and government agencies as evidence of the country’s innovation strength.

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Take the battery sector. Contemporary Amperex Technology Co., Limited, or CATL, has invested more than 100 billion RMB in R&D over the past decade and holds over 60,000 patents. BYD has filed more than 50,000 cumulative patent applications, with invention patents making up a growing share. In solid-state batteries, high-voltage fast charging, and lithium iron phosphate chemistry, Chinese companies have built substantial patent portfolios that global competitors cannot easily bypass.

However, patent attorneys and industry consultants point to a persistent issue: a large portion of the patents are incremental rather than foundational. A Shanghai-based intellectual property lawyer who has worked with auto suppliers for over a decade said his firm sees thousands of patent applications each year that are variations of existing technologies. “The volume is impressive,” he said. “But when you filter for patents that could survive a litigation challenge in Europe or the United States, the number drops significantly.”

This gap between quantity and quality is starting to matter more as Chinese NEV exports climb. In the first quarter of 2026, NEV exports surged more than 60 percent year-on-year, making the sector a core part of China’s “New Three” export categories. Europe, Southeast Asia, and the Middle East have become major destinations. But with higher export volumes come higher risks of patent disputes.

A European automaker recently rejected a bid from a Chinese supplier, according to two industry sources familiar with the matter. The reason was not cost or product performance. The Chinese company could not provide sufficient assurance that its products did not infringe patents held by Japanese and Korean competitors. The deal went to a different supplier.

Cases like this remain rare, but they are increasing. Patent litigation involving Chinese auto suppliers has roughly doubled since 2022, according to estimates from a Beijing-based intellectual property research firm. Most cases are still heard in Chinese courts. But overseas cases are starting to appear, and legal teams in Japan, Korea, and Germany are reportedly preparing for more.

Chinese policymakers have recognized the quality issue for years. The latest amendments to the Implementing Regulations of the Patent Law, which took effect in 2024, included provisions aimed at encouraging higher-quality filings and curbing abusive applications. Local governments, however, have been slower to adjust their incentive programs. Many counties and districts still offer subsidies or performance credits based on patent counts, which encourages companies to file large numbers of low-value applications.

A county-level economic official in Guangdong province, speaking on condition of anonymity, acknowledged the problem. “My performance review still includes a target for patent filings,” he said. “Until that changes, companies will keep filing for the sake of filing.”

Some companies are moving ahead regardless. The best Chinese auto tech firms have shifted their focus to building defensible patent portfolios in multiple jurisdictions. CATL now holds patents in Europe, the United States, Japan, and South Korea. BYD has followed a similar path. A handful of smaller firms are also filing Patent Cooperation Treaty applications, which provide a pathway to patent protection in more than 150 countries.

On the technology front, China’s strengths are concentrated in battery chemistry and manufacturing processes. The country holds a commanding lead in lithium iron phosphate patents. Patent filings for solid-state batteries have surged since 2023. In these areas, Chinese companies have accumulated intellectual property that global players need to license or work around.

Weaknesses remain in power electronics, thermal management software, and certain sensor technologies. A German supplier that licenses battery pack patents from two Chinese firms said it does not bother looking at Chinese patents in motor control software. “The patents there are not enforceable,” a company representative said.

That assessment may be overly harsh, but it reflects a common perception among international players. Chinese companies have closed the gap in some areas but not all.

Industry data shows that patents related to new energy and intelligent connected vehicles together accounted for more than half of China’s total automotive patents by 2025. Battery system patents alone exceeded 50 percent of that subset.