Institutional statistics reveal that global energy storage battery shipments reached 216 GWh in the first quarter of 2026, marking a 117% year-on-year increase, while China's energy storage battery shipments hit 209 GWh, up 115% year-on-year. Demand for battery cells was primarily concentrated among leading system manufacturers such as Tesla, Sungrow Power Supply, and BYD Company Limited (which supplies its own cells). The top ten system integrators accounted for nearly 50% of the market share, indicating significant potential for further industry consolidation.
Recent developments highlight Chile's move to diversify its economy beyond its traditional reliance on copper. The country will host a one-day lithium mining forum during next week's annual global copper conference, signaling accelerated efforts toward resource diversification. Meanwhile, lithium prices have rebounded strongly to multi-year highs, driven by geopolitical risks in the Middle East raising concerns about oil supplies and sustained demand for electric vehicle batteries.
The inaugural World Lithium Resources Conference, jointly organized by CRU Group and the International Lithium Association, will commence Monday in Santiago. CRU data shows the number of active global lithium mining projects has doubled over the past four years and is expected to approach 80 by 2026, though supply growth continues to lag behind demand expansion.
Martin Jackson, CRU's head of lithium and battery materials, noted that while electric vehicle market growth has moderated, explosive demand for stationary energy storage batteries has effectively offset this weakness. He emphasized that lithium remains the most competitive battery technology for years to come due to its unparalleled energy density advantages.
Macquarie Bank predicts that driven by strong energy storage demand, global lithium demand will maintain a compound annual growth rate exceeding 20% through the end of the decade, even with slowing electric vehicle growth. Asad Farid of J. Safra Sarasin Sustainable Asset Management stated that the market has entered a tight balance where "demand inevitably exceeds delayed supply," creating strong upward price momentum.
In the domestic Chinese market, new energy storage installations nearly doubled year-on-year in the first quarter of 2026, with residential, large-scale, and commercial-industrial storage all experiencing robust growth. Combined with factors including lithium carbonate prices rebounding strongly from bottom levels and historically low industry chain inventory, the industry has essentially established a pattern of simultaneous volume and price increases.
Supporting data confirms the market's strong momentum. According to DDDN Epoch智库's latest research, China's lithium battery market (covering energy storage, power, and consumer batteries) is expected to reach 235 GWh in April 2026, up 7.3% month-on-month, with energy storage cells accounting for 41.3%. Data from the China Automotive Power Battery Industry Innovation Alliance shows that combined power and energy storage battery production reached 177.7 GWh in March, increasing 25.5% month-on-month and 50.2% year-on-year. Cumulative production for January-March reached 487.4 GWh, up 49.3% year-on-year. March sales of power and energy storage batteries totaled 175.1 GWh, rising 54.7% month-on-month and 51.6% year-on-year, with energy storage battery sales surging 115.9% to 60.4 GWh.
Additional positive developments include a joint symposium held on April 9 by China's Ministry of Industry and Information Technology, National Development and Reform Commission, State Administration for Market Regulation, and National Energy Administration to standardize industry competition and ensure healthy sector development.
Caixin Securities believes that while global power battery shipment growth may moderate in 2026 after rapid expansion in 2025, energy storage battery demand is expected to continue growing, becoming a key driver of overall battery demand. Lithium iron phosphate remains the dominant technology for energy storage batteries, and related companies in this supply chain are positioned to benefit significantly.
CITIC Securities notes that the energy storage industry is transitioning from cost competition to value creation, with investment value gradually emerging. They project high-speed growth in domestic energy storage installations for 2026 and favor leading manufacturers across the energy storage industry chain, including system integrators, cell suppliers, and power conversion system (PCS) suppliers.
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