In the first half of 2026, the total production of power and energy storage batteries surpassed the 1 TWh milestone for the first time, reaching 1068.9 GWh, a year-on-year increase of 53.3%. Sales for the same period followed closely at 979.4 GWh, rising 48.6% year-on-year.
Key Market Trends
While previous years of lithium battery growth were primarily driven by new energy vehicles, the industry is now undergoing a moderate shift in momentum. The landscape, once dominated by power batteries with energy storage as a supplement, is gradually changing. A clear trend has emerged: power battery growth is moderating, while the energy storage sector is taking over as the main driver of industry expansion. In the first half of the year, energy storage achieved a year-on-year growth rate of 83.4%, significantly outpacing the 36.2% growth of power batteries. The continuous deployment of new domestic energy storage power stations, coupled with increasing orders for overseas residential and commercial & industrial storage, is driving demand and filling production capacity for storage cells. Although the growth rate has moderated slightly from last year's over 100% increase, energy storage remains the most certain high-growth segment in the entire industry chain, offsetting pressure from weakening domestic new energy vehicle demand.
Forecast for Energy Storage
At the recently concluded 2026 industry summit, the chairman of a leading lithium battery research firm predicted that energy storage battery shipments in 2026 would increase by over 60% year-on-year, with annual shipments exceeding 1 TWh. The proportion of energy storage in total lithium battery shipments is expected to continue rising, reaching over 38% in 2026, exceeding 40% in 2027, and is anticipated to surpass 50% by 2028, signaling an end to the era of power battery dominance in the lithium market.
Power Battery Dynamics
In the domestic vehicle installation segment, power battery installations in the first half of 2025 were 299.6 GWh, a sharp increase of 47.3% year-on-year. For the same period this year, installations reached 335.6 GWh, representing a much slower growth of only 12%. The slowdown in vehicle production growth has been partially offset by an increase in the average battery capacity per vehicle. The average battery capacity for new energy vehicles in the first half was 69.1 kWh, a 34% increase year-on-year. Trucks and special-purpose vehicles, with their much higher power consumption per unit, have helped stabilize the overall installation base. Additionally, exports have become a stable growth curve for power batteries. Cumulative power battery exports reached 122.7 GWh, accounting for 67.7% of total exports and growing 50.3% year-on-year.
Performance of Leading Battery Makers
As overall industry growth for power batteries enters a moderate phase, differentiation within the market has become more pronounced. Key players within the top ten have demonstrated stronger growth resilience, outperforming the industry average and becoming relatively bright spots in the sector. REPT BATTERO, Zenergy, EVE Energy Co., Ltd., and Gotion High-tech Co., Ltd. achieved installation growth rates of 68.59%, 52.27%, 37.59%, and 34.04% respectively in the first half, all significantly surpassing the industry average of 12%, achieving relatively robust growth during a period of overall industry calm.
Gotion High-tech Co., Ltd. achieved a dual breakthrough in scale and industry ranking. In the first half of this year, its power battery installations increased from 15.48 GWh in the same period last year to 20.75 GWh, and its industry ranking steadily climbed from fourth to third place. Rapid growth in overseas markets was its core highlight, with power battery exports surging 209.7% year-on-year in the first half, a leading rate within the industry. This growth round likely benefited from the scaled delivery of Volkswagen's standardized cell, helping it rapidly expand in overseas markets. Simultaneously, the company continued to deepen its presence in commercial vehicle segments like electric trucks and special-purpose engineering vehicles, steadily securing supporting orders, with both domestic and international markets supporting steady growth in installation scale.
EVE Energy Co., Ltd. maintained a relatively steady high-growth rhythm, firmly holding the fifth position in the industry. The company continued to advance capacity release and product iteration. The large cylindrical battery production line at its Jingmen base is stabilizing, with its 46-series cells achieving batch exports and gradually supporting high-end new energy models for overseas mainstream automakers, solidifying its layout in overseas high-end markets. Domestically, EVE Energy is actively deploying in the electrification of heavy-duty trucks and construction machinery, steadily landing large commercial vehicle orders. Internationally, the company has moved beyond a simple product export model. Through joint R&D and localized supply partnerships, and leveraging its production base in Hungary to align with European automakers' delivery schedules, it is securing high-quality overseas orders long-term, gradually building a robust overseas growth advantage.
REPT BATTERO emerged as a growth dark horse within the top ten, leading the industry with a 68.59% year-on-year increase and climbing from the eighth to the sixth position in the industry ranking. The commercial vehicle sector is its long-established foundation. In 2025, its new energy heavy-duty truck installations ranked second nationally, and it remained a top player in Q1 2026, demonstrating a deep-rooted presence in the segment. Leveraging its multi-base production layout at home and abroad, REPT BATTERO continues to iterate lightweight, highly integrated battery solutions. Its products essentially cover the full spectrum of heavy-duty truck electrification needs, from short-distance to medium-haul and line-haul transportation, continuously benefiting from the industry's electrification红利 and increasing its market share in this segment.
Zenergy also achieved simultaneous growth in both its rate and industry ranking, with first-half installations up 52.27% year-on-year. The company has formed a balanced business structure focused on passenger vehicles with support from commercial vehicles, which helps hedge against cyclical fluctuations in any single segment and provides relatively stable support for overall business growth. Currently, Zenergy has successfully entered the supply chains of several leading domestic and international automakers including Toyota, Volkswagen, General Motors, SAIC Motor, and GAC Group, with a relatively ample order reserve. Continuous technological iteration is a key support for its steady market share improvement. Since 2025, the company has gradually applied R&D成果 from aviation power batteries to the automotive market, continuously promoting upgrades in vehicle battery products to build momentum for long-term business growth.
Financial Performance
The impressive installation growth rates are gradually translating into improved profitability, with clear signs of performance enhancement for the aforementioned battery manufacturers. REPT BATTERO's profit for the first half of 2026 already exceeded its full-year 2025 profit, turning a loss from the same period last year into a profit. EVE Energy Co., Ltd. saw its first-half net profit more than double year-on-year. Gotion High-tech Co., Ltd. reported a maximum year-on-year increase in first-half net profit exceeding 300%. Among the high-growth companies, BYD Company Limited presented a relatively unique case, becoming a company within the top ten with a weakening installation growth rate. The core reason likely lies in the fact that its battery capacity primarily supports its own vehicle business, with limited scale for third-party supply, lacking the incremental buffer from external automaker orders. Coupled with pressure on its own vehicle terminal sales, this somewhat dragged down the growth rate of its battery business, creating a clear contrast with the growth trends of other manufacturers.
Emerging Opportunities and Technology Shifts
The differentiation and iteration within the power battery industry are not only reflected in the reshuffling of company rankings but also in profound restructuring across sub-segments and technology routes. Among these, the previously underestimated electrification of commercial vehicles has become the most certain incremental blue ocean for the power battery industry. The concentrated release of policy红利 has ignited a落地热潮 for commercial vehicle electrification. In the first half of this year, 11 ministries jointly issued a专项方案, setting a clear target of 40% penetration for new energy heavy-duty trucks by 2030 and planning the construction of national zero-carbon highway corridors. Accompanying supporting policies such as road priority rights, purchase subsidies, and完善 charging infrastructure have全面 activated market demand for new energy heavy-duty and light-duty trucks.
The爆发 of market demand is直观 reflected in the data, with domestic纯电动货车 installations in the first half of 2026 increasing 58.5% year-on-year. Compared to普通 passenger vehicles, new energy heavy-duty trucks typically have battery capacities exceeding 220 kWh, more than three times that of passenger cars, contributing极高 per-unit installation and becoming a significant incremental driver for overall power battery volume growth. The competitive landscape in this segment is also adjusting. Contemporary Amperex Technology Co., Limited still leads断层ly凭借 its深厚积淀, with a 43.96% market share in commercial vehicle battery installations in the first half, though this share saw a slight decline compared to the same period last year. Competition in the industry's second tier continues to evolve, with CALB Co., Ltd. successfully跻身 the top three in commercial vehicle installations with an超 high growth rate of 144.44%, indicating increasingly fierce competition in the赛道.
Export Technology Route Reversal
Another highly symbolic change comes from the technology route格局 of power battery海外 exports. In the first half of 2026, lithium iron phosphate power battery exports grew 88% year-on-year, with their export share rising to 50.9%, historically surpassing the 48.8% share of ternary batteries for the first time. This reversal stems from the迭代 of vehicle model structures in overseas new energy markets. For a long time, the overseas new energy market was dominated by高端 long-range models, making high-energy-density ternary batteries the mainstream. However, since this year, markets like Europe, Southeast Asia, and Latin America have rapidly普及平价代步 electric vehicles, where cost-effectiveness and safety have become core considerations for automakers in model selection. In this context, the advantages of LFP batteries—low cost, high cycle life, and high safety—have been充分放大, precisely meeting the needs of overseas平价车型. Simultaneously, the大规模普及 of CTP cell-to-pack technology has significantly narrowed the energy density gap between LFP and ternary batteries,抹平 the traditional advantage of ternary cells. Overseas automakers have subsequently adjusted their procurement structures, continuously reducing the proportion of ternary battery采购 and increasing procurement of Chinese LFP cells, ultimately driving LFP export growth to surpass that of ternary batteries, completing an overseas逆袭 for the technology route.
Comments