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中文July 2026 marks a period of profound adjustment for the lithium battery industry, with multiple news events directly affecting procurement costs and supply chain security. We have distilled three core dynamics to help you navigate the market in the second half of the year.
Signal 1: Lithium carbonate price dips below CNY 90,000/tonne, reopening a cost window
According to SMM data on July 18, battery-grade lithium carbonate averaged below CNY 88,000/tonne, a drop of roughly 15% from the start of the year. The decline is driven by concentrated new capacity from lithium projects in Argentina and Africa, alongside the peak brine extraction season. In the near term, further softening is possible. However, with global NEV sales maintaining over 20% growth and massive energy storage orders in the pipeline, prices are likely to stabilize and rebound in Q4. Procurement advice: avoid chasing the price down aggressively. Consider locking in a portion of volume through long-term contracts while remaining flexible with spot purchases to balance cost and risk.
Signal 2: EU Battery Regulation carbon footprint declaration fully enforced – non-compliance leads to rejection
Since February 2026, all industrial and EV batteries above 2 kWh placed on the EU market must carry a verified carbon footprint declaration. In early July, several Asian battery shipments were detained and face return procedures at French and German customs due to incomplete data or failing to meet carbon thresholds. Compliance is no longer a bonus but a non-negotiable market entry requirement. Battery exporters must complete product LCA certification in advance and prioritize cell suppliers with a high ratio of green electricity. Our entire lithium battery product line has completed carbon footprint modeling and accounting, offering clients comprehensive compliance data to ensure smooth customs clearance.
Signal 3: Semi-solid-state battery yield exceeds 92%, high-end applications benefit first
On July 15, a leading Chinese battery manufacturer announced its semi-solid-state battery production line achieved a yield rate exceeding 92% and has begun volume shipments to international drone and premium 3C brands. The product delivers an energy density of up to 360 Wh/kg and has passed rigorous nail penetration safety tests. Meanwhile, Toyota plans to begin small-scale pilot production of all-solid-state batteries in the second half of 2026. Although automotive-grade all-solid-state batteries still require 2-3 years of maturation, semi-solid-state technology is already creating substitution opportunities in high-value portable devices, medical equipment, and specialized energy storage. For procurement of differentiated products, integrating semi-solid-state solutions now is a key move to seize the technological high ground in the end market.
In Summary: The second half of 2026 presents both opportunities and challenges for the lithium battery sector. We advise clients to closely monitor raw material price inflection points, immediately prepare EU compliance documentation, and actively evaluate the product iteration potential offered by next-generation solid-state battery technology – thereby building a more resilient and competitive supply chain.
