Analysts project that the global demand for energy storage batteries could expand to 2,728.5 GWh in 2026 and further to 3,272.3 GWh in 2027, representing year-on-year growth rates of 26% and 20%, respectively.
With the industry anticipated to enter a peak demand period in the second half of 2026, midstream materials are positioned for potential price increases. The combination of battery manufacturing and lithium mining is viewed as a strategic choice offering both stability and growth potential.
The firm is optimistic that energy storage systems and new energy vehicle exports will jointly propel the lithium battery sector's upward trajectory. Given the industry's positive trend and the approaching peak season, midstream materials are expected to see upward price momentum. The outlook favors battery and lithium mining segments, while also recommending copper foil and sodium-ion battery technologies.
Market Demand Dynamics
Passenger vehicle exports and commercial vehicles are emerging as new growth drivers for the power battery market, while global energy security concerns are fueling rapid expansion in the energy storage battery sector.
For power batteries, increasing battery capacity per vehicle supports domestic demand, with passenger vehicle exports and commercial vehicles becoming significant new contributors. Estimates suggest global power battery demand will reach approximately 1,666.9 GWh in 2026 and 1,938.7 GWh in 2027, reflecting year-on-year increases of 20% and 16%, respectively.
In the energy storage segment, the global emphasis on energy security is sustaining high growth rates, with a positive outlook for future development. Projections indicate global energy storage installations will hit 465 GWh in 2026 and 601 GWh in 2027, with year-on-year growth of 45% and 29%. Corresponding battery shipments for energy storage are forecasted at 908 GWh and 1,172 GWh for those years, mirroring the same growth rates.
Aggregating these figures, total demand for lithium batteries is expected to grow to around 2,728.5 GWh in 2026 and 3,272.3 GWh in 2027, with year-on-year increases of 26% and 20%.
Supply and Pricing Outlook
The lithium battery industry is currently at a critical juncture of supply-demand balance. With estimated total demand for 2026 at 2,728.5 GWh, the market is in a relatively matched state. Should demand growth in the latter half of 2026 surpass expectations, the supply side could enter a tight phase.
Prices for most raw materials are showing an upward trend. Energy storage cell, cathode, and related raw material prices continue to rise. Electrolyte and its raw material prices have stabilized after previous declines. Processing fees for anodes, separators, and copper/aluminum foil have seen modest increases.
Considering the anticipated entry into a peak season in the second half of 2026, midstream materials possess underlying momentum for price increases. The battery and lithium mining sectors are seen as offering a blend of robustness and growth elasticity. Additionally, the copper foil segment, driven by both lithium battery and artificial intelligence demand, is viewed favorably, alongside the accelerating adoption of sodium-ion battery technology.
Copper Foil: A Key Growth Area
The transition to HVLP (High-Very Low Profile) and carrier copper foils is considered an inevitable trend, with promising prospects for domestic substitution in the supply chain.
Copper clad laminate accounts for approximately 27.30% of PCB costs, with copper foil constituting about 42.10% of the laminate's cost. In high-frequency, high-speed applications where signal attenuation is a significant concern, the electrical performance requirements for copper clad laminate materials are becoming more stringent. RTF and HVLP are mainstream products for such high-performance laminates, driving the upgrade of electronic circuit copper foil towards HVLP specifications.
The application of mSAP technology is expanding into areas like optical modules, data storage, and CoWoP, thereby stimulating demand for carrier copper foils. Domestic manufacturers are accelerating their deployment of HVLP copper foil capabilities. Companies have already achieved mass production of RTF/HVLP1-2 grades, with HVLP4 currently in the research, development, and verification stage.
Sodium-Ion Battery Advancements
Sodium-ion batteries offer distinct advantages including long cycle life, excellent low-temperature performance, and cost-effectiveness, with industrialization accelerating in both power and energy storage applications.
Leading firms are rapidly advancing the research, development, and production of sodium-ion batteries. A collaboration has resulted in the world's first mass-produced sodium-ion battery passenger vehicle. Furthermore, a significant three-year supply agreement for 60 GWh of sodium-ion batteries for energy storage has been secured, marking accelerated industrialization.
Forecasts suggest China's sodium-ion battery shipments could exceed 7 GWh in 2025 and surpass 200 GWh by 2030, implying a compound annual growth rate of approximately 97.5%.
Potential Investment Risks
Key risks to consider include potential shortfalls in downstream demand, volatility in raw material prices, slower-than-expected progress in the commercialization of new technologies, and intensifying industry competition.
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