Data released by the China Passenger Car Association shows that lithium battery exports reached $58 billion in the January-July period of 2026, up 41% year-on-year. July exports held steady at $9.4 billion, representing a 33% increase compared to the same month last year. Export prices for lithium-ion batteries have shown modest month-on-month gains in recent months, though year-on-year comparisons continue to reflect declines.
July shipments totaled 600,000 tonnes with a value of $9.4 billion. The unit price trajectory has fallen from $27,300 per tonne in 2023 to $20,100 in 2024, then to $15,700 in 2025, and further down to $15,200 in 2026 — a drop of just 8% this year, representing a marked improvement versus the 26% plunge in 2024 and the 22% contraction in 2025. July's average export price actually edged up 2% year-on-year to $15,500 per tonne, signalling some stabilisation in per-tonne pricing.
The European Union remains the dominant destination for Chinese lithium battery exports, absorbing around 42% of total shipments in 2026, up two percentage points from 2025. Exports to the United States have contracted sharply to just 10% of the total, down six percentage points year-on-year, with the decline continuing unabated.
In renminbi terms, the price erosion has been more pronounced this year. Export prices fell 26% to RMB 142,900 in 2024, dropped another 21% to RMB 112,300 in 2025, and declined a further 11% to RMB 105,000 in 2026. July's average reached RMB 106,000, down 3% year-on-year, though the rate of decline following the export tax rebate adjustments between April and July has improved markedly compared with last year's trajectory.
Where the market stands
Despite domestic new energy passenger vehicle retail sales falling 20% year-on-year in 2026, China's lithium battery sector has delivered strong export performance through higher domestic prices paired with aggressive overseas pricing. This strategy of volume growth at lower prices has proven effective, supported by expansion into emerging markets while deepening penetration in core markets — successfully navigating the challenges posed by shifting internal conditions.
Lithium-ion batteries, as a marquee product among the "new three" export categories, have demonstrated outstanding performance with healthy margins and robust market demand. Export values climbed from $28.4 billion in 2021 to $50.9 billion in 2022, then surged to $64.9 billion in 2023 before slipping 6% in 2024. Rebounding strongly, 2025 exports reached $76.8 billion, with the 2026 January-July figure of $58 billion already representing 41% annual growth.
Solar battery export trends
Solar batteries, another key "new three" product, have seen more volatile export patterns with significant declines over the past two years amid intense industry competition. Following explosive growth after the Russia-Ukraine crisis — from relatively stable levels in 2020 through marked gains in 2021 and a surge to $92.8 billion in 2022 — exports retreated to $87.6 billion in 2023 as energy markets stabilised. The decline accelerated to $61.2 billion in 2024 and $56.4 billion in 2025, down 8%. The first seven months of 2026 reached $37.2 billion, up 20%, though July alone fell 4% year-on-year to $4.3 billion.
Export market composition
China's lithium battery shipments flow primarily to the EU, Southeast Asia, Japan, South Korea and the Middle East. For July 2026, the leading destination markets were Germany at $1.30 billion, the United States at $772.8 million, the Netherlands at $664.2 million, India at $601.9 million, Vietnam at $573.0 million, South Korea at $435.1 million, Japan at $407.6 million, Hungary at $330.1 million, Australia at $272.6 million and the UK at $226.3 million. The fastest-growing markets compared with the same period last year were India (up $320.0 million), Japan (up $256.3 million), the Netherlands (up $243.1 million), Hungary (up $203.8 million) and Romania (up $194.6 million).
For the January-July period, Germany led with $8.31 billion, followed by the US at $5.26 billion, the Netherlands at $4.32 billion, India at $3.44 billion, Vietnam at $3.43 billion, Japan at $2.75 billion, Australia at $2.66 billion, South Korea at $2.51 billion, Hungary at $1.60 billion and the UK at $1.27 billion. The largest year-on-year gains came from the Netherlands (up $2.24 billion), India (up $1.63 billion), Japan (up $1.54 billion), Australia (up $1.35 billion) and Vietnam (up $1.17 billion).
Pricing dynamics
Monthly pricing data shows a stabilising trend. July exports of 600,000 tonnes generated $9.4 billion, with average prices per tonne trending from $27,300 in 2023 down to $20,100 in 2024 and $15,700 in 2025, settling at $15,200 for 2026 to date — an 8% decline that compares favourably with previous years' steeper contractions. July's average of $15,500 per tonne represents a 2% year-on-year improvement.
The renminbi-denominated perspective reveals persistent downward pressure regardless of lithium carbonate price movements. From RMB 142,900 per tonne in 2024 (down 26%) to RMB 112,300 in 2025 (down 21%), prices reached RMB 105,000 in 2026, an 11% decline. July's average of RMB 106,000 reflected only a 3% year-on-year decrease.
US market analysis
Exports of lithium batteries to the United States have declined substantially overall in 2026. July unit prices rose 26% year-on-year to $14,600 per tonne, showing marked improvement from the October-November 2025 period. In renminbi terms, prices fell from RMB 119,600 in 2024 (down 19%) to RMB 91,500 in 2025 (down 24%), with July 2026 averaging RMB 99,300 per tonne — up 20% due to renminbi appreciation. Shipment volumes continue to dwindle, reflecting that the US surge in AI-driven power and energy storage demand has yet to translate into increased Chinese battery imports.
EU market analysis
The European Union stands as China's largest lithium battery export market, maintaining a stable share of roughly 42% of global shipments — up two percentage points from 2025, consolidating its strategic importance. July 2026 exports to the EU reached $3.9 billion across 244,000 tonnes, serving as a critical engine for overall export growth. Values climbed from $22.2 billion in 2024 to $31.0 billion in 2025, a 40% increase. July's average export price of $16,100 per tonne represented a 15% decline, while renminbi-denominated prices fell from RMB 153,400 in 2024 (down 25%) to RMB 125,500 in 2025 (down 18%), with July 2026 averaging RMB 110,200 per tonne, down 18%. The strong EU growth has effectively compensated for the contraction in US-bound shipments.
Overall, 2026 has proven a resilient year for China's lithium battery export sector. The combination of rising domestic prices, competitive international pricing, and aggressive volume growth has generated exceptional results — with the export quantity performance standing out even as prices declined, successfully offsetting the challenges posed by weaker domestic demand and shifting global trade dynamics.
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