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中文September has brought major shifts across the lithium battery industry, driven by surging demand, rebounding prices, and new policy moves. While global energy storage demand grows at record pace and leading players sign large-scale contracts, cell prices have ended two years of decline, a consumption tax has taken effect, and capacity-overhang warnings have emerged. The industry is clearly moving from “volume competition” toward value-based competition.
Energy storage is the growth engine
Energy storage has become the fastest-growing segment of the battery market. According to SNE Research, global shipments of lithium-ion storage batteries reached 461.3 GWh in H1 2026, up 71% year-on-year, while EV battery installations grew 20.0% to 608.5 GWh. In China, combined sales of power and storage batteries totaled 979.4 GWh in the first half of 2026, up 48.6%, with storage battery sales surging 83.4%. Market surveys expect China’s September battery production to exceed 330 GWh, up about 9% month-on-month, with storage cells accounting for roughly 130 GWh (nearly 40%), driven mainly by year-end grid-connection pushes at overseas projects in the Middle East, Europe, and the US.
Prices bottom out, consumption tax lands
After two years of decline, storage cell prices are climbing back. The average price of 314Ah LFP storage cells has rebounded to around RMB 0.365/Wh in September, up over 20% from the low at the end of 2025; CATL’s 587Ah large-format cell was also publicly listed for the first time at RMB 0.415/Wh. Meanwhile, lithium carbonate prices—which had rebounded sharply from below RMB 60,000/ton in mid-2025—pulled back in September, with the main futures contract briefly dropping to around RMB 128,000/ton on September 11 and spot prices at roughly RMB 142,300/ton, down over 35% from the May peak. On the policy front, a 2% consumption tax on lithium-ion batteries took effect on September 1, 2026, set to rise to 4% from September 1, 2027—reshaping cost structures and price mechanisms across the chain.
Big orders and capacity warnings: an accelerating shakeout
Amid strong demand, leading players are locking in major contracts. On September 18, EVE Energy announced a framework agreement with Fluence to supply 206 GWh of storage batteries over 2027–2031, highlighting overseas expansion and AI data center (AIDC) storage as key battlegrounds. At the same time, capacity expansion remains aggressive: planned storage cell capacity has surpassed 2 TWh industry-wide, with year-end built capacity estimated at 1.2–1.5 TWh versus expected 2026 global shipments of only about 850 GWh—more than double the actual demand. Signals of capacity inventories and deferred approvals for new storage projects have already emerged, making blind expansion increasingly risky.
Solid-state batteries accelerate
On the technology front, solid-state and semi-solid-state batteries are clearly speeding toward commercialization. On September 21, Gotion High-Tech launched its high-power “Morning Star” battery for low-altitude flight, with a cell energy density of 330 Wh/kg and support for both fast charging and battery swapping; a 1,000-tonne-class solid-state electrolyte project by Yibin Chenfeng New Materials was signed in Heyuan, Guangdong with an investment of RMB 530 million; and Yinpai Battery earlier unveiled a 587Ah semi-solid-state storage cell. From low-altitude aviation to long-duration energy storage, next-generation battery technologies are opening up broader application scenarios.
In summary, 2026 marks a pivotal year for the lithium battery industry—one that is transitioning from price wars to value competition. With energy storage taking over as the primary growth engine, players with strong technology, cost control, and global delivery capabilities will gain the upper hand in the ongoing reshuffle. For buyers, closely tracking price windows, securing quality capacity, and aligning with technology upgrade cycles will be the key tasks for the second half of the year.
