As the first half of 2026 draws to a close, the global lithium battery industry is undergoing a profound structural transformation. The shift from a “price war” to a “tight supply-demand balance” is the dominant theme of this quarter.

1. Market Panorama: Energy Storage Takes the Lead

According to recent research reports from Goldman Sachs and top domestic securities firms, 2026 is the first year where Energy Storage has officially surpassed EV batteries to become the No.1 growth engine for the lithium industry.

• Demand Drivers: Surge in demand from Data Center (AIDC) backup power, large-scale storage in the US/Europe, and energy transition in the Middle East. Production schedules for June remain high, with month-on-month growth of 1%-6% and a year-on-year surge of 68%.

• Price Trends: After a previous correction, lithium carbonate prices are rising again, hitting 175,300 RMB/ton in mid-June. Institutions predict prices may test 250,000 RMB/ton in Q4.

2. Supply Chain Dynamics: Resource Scramble Intensifies

The “tight balance” in upstream resources is intensifying.

• Global Disruptions: Africa, a major source of new lithium supply, faces policy uncertainties. Zimbabwe’s export quota system and logistical bottlenecks (e.g., Beira port congestion) are delaying arrivals.

• Vertical Integration & Lock-ups: To secure supply chains, giants are moving fast. In early June, CATL signed long-term contracts totaling 770,000 tons of electrolyte with Yongtai Technology and Capchem, securing production capacity for the next three years.

3. Tech Frontiers: Solid-State & Dry Battery Breakthroughs

While liquid lithium batteries dominate, next-gen tech is accelerating:

• Solid-State Milestone: European startup SOLiTHOR announced a solid-state battery achieving 465 Wh/kg. A 10Ah pilot cell is already offline, targeting aerospace and specialized sectors first.

• 4680 & Dry Electrode: With breakthroughs in “all-dry” processes (achieving 295Wh/kg), the production bottlenecks for 4680 cells are being resolved. This tech cuts energy consumption by over 40% and paves the way for all-solid-state manufacturing.

4. Outlook

In the short term, the lithium industry is expected to see rising volumes and prices, particularly towards Q4. Watch for vertically integrated leaders and material suppliers pioneering solid-state patents.

What is Happening?

Since Q2 2026, the global lithium battery industry has entered a new cyclical phase. The most eye-catching news is that CATL signed two long-term electrolyte procurement agreements with Capchem and Yongtai Technology within just two days, locking in a total of 770,000 tons of electrolyte for 2026-2028.

This is not a routine purchase. Based on the ratio of 1,000 tons of electrolyte per GWh, this supply can support 770GWh of battery capacity—exceeding CATL’s total shipments for all of 2025. Interestingly, former exclusive supplier Tinci Materials was not on the list, indicating a reshaping supply chain landscape.

Key Drivers: It’s Not Just About EVs Anymore

The reasons behind this buying spree are demand spikes from multiple fronts:

1. Energy Storage Boom: At the recent SNEC 2026 exhibition, energy storage order signings exceeded 92.7GWh. Ganfeng Lithium reported that its storage cells are sold out, with utilization rates near 100%.

2. Price Recovery: Electrolyte prices have surged over 70% from the 2025 low to approximately $4,100/ton currently.

3. Profit Recovery: Industry profitability is rebounding. In Q1 2026, Tinci Materials saw net profit surge 1,005.75% year-on-year, confirming the upward cycle.

Global Perspective: Not Just a China Story

While China dominates over 80% of global battery production, demand is robust worldwide. IEA data shows the global lithium battery market exceeded $150 billion in 2025. However, supply chains in North America and Europe face cost challenges, with production costs roughly 50% higher than in China. This cements China’s position as the central hub for battery supply chains.

Outlook & Suggestions

For the coming market trends:

• High-end capacity remains tight: The race to the bottom for low-end products is ending. Top-tier players with technical advantages will command higher premiums.

• Solid-state & Sodium-ion are coming: CATL has confirmed mass production of sodium-ion batteries in 2026, bringing new investment opportunities.

Advice for buyers: If you are sourcing cells or storage systems for H2 2026, it is advisable to secure capacity with tier-1 manufacturers now. Cheap inventory is bottoming out, and prices are likely to rise further as the traditional peak season (Q3) approaches.

Several recent news stories have reshaped the lithium battery landscape. As we reach June 2026, here are three trends you cannot afford to ignore when planning your sourcing and supply chain strategy.

1. The Solid-State Battery Race Gets Real

In May 2026, multiple top-tier battery makers from China, Japan, and Korea announced accelerated mass-production timelines for solid-state batteries. One Japanese automaker has already begun small-scale deliveries of vehicles powered by sulfide-based solid-state cells, featuring over 1,000 km of range and a 15-minute fast charge. More importantly, costs are rapidly approaching those of premium liquid-electrolyte batteries. This signals that the high-end power battery segment could be reshaped within two years — early movers in materials and equipment supply are acting now.

2. EU Battery Regulation Carbon Footprint Thresholds Take Effect

In the second quarter of 2026, the EU Battery Regulation’s mandatory carbon footprint declaration and classification limits for industrial and EV batteries officially went into force. Batteries failing to meet the carbon footprint thresholds are now barred from the EU market. Recently, we have seen reports of export shipments delayed at customs due to insufficient carbon data. We strongly recommend that all battery manufacturers and buyers targeting Europe immediately audit their supply chain carbon data and prioritize suppliers with certified green electricity ratios and verified low-carbon processes.

3. Lithium Prices Stabilize and the Recycling Window Opens

After a nearly two-year downturn, battery-grade lithium carbonate prices have stabilized in the range of 80,000 to 100,000 CNY per ton since April 2026. Industry reports indicate that with the clearing of high-cost brine capacity and continued demand growth from energy storage, lithium prices show no further significant downside. At the same time, large-scale battery recycling is becoming consistently profitable. Recent financial disclosures from leading recyclers show their lithium carbonate production costs falling below those of some hard-rock miners, creating a commercially viable “take-back” circular economy.

Our Advice

In a market this dynamic, simple price-based procurement carries growing risk. We recommend expanding your focus to include sustainable compliance capabilities, next-generation technology compatibility, and total lifecycle cost. We specialize in high-standard lithium battery customization and global regulatory support. Whether you are sourcing power cells, and energy storage systems, or upgrading for EU compliance, feel free to contact our engineering team for a one-on-one consultation.

As the second quarter of 2026 unfolds, the lithium battery industry continues to build on its recovery momentum. Driven by surging energy storage demand, breakthroughs in solid-state battery technology, and tightening regulatory frameworks, the industry landscape is undergoing significant transformation.

1. Energy Storage Demand Surges, Global Lithium Battery Forecasts Revised Upward

Energy storage battery demand has shown no signs of slowing in 2026. At CIBF 2026 in Shenzhen this May, multiple battery manufacturers reported that their production capacity was fully booked through the third quarter, with customer focus shifting from pricing to delivery lead times. During the expo, China‘s Chunen Energy secured 50 GWh in bulk orders within just three days, covering utility-scale storage, residential storage equipment, and more. In April, Soochow Securities raised its 2026 global lithium battery demand forecast to 2,939 GWh, representing a 32.3% year-on-year increase, with energy storage cell demand reaching 1,024 GWh, up 60% year-on-year. Energy storage has become the fastest-growing segment within the lithium battery sector, with high-power-consumption applications such as AI data centers emerging as new growth engines.

2. Solid-State Batteries Enter Production, Application Scenarios Expand Rapidly

In late May, Ganfeng Lithium announced the start of small-scale production of what it calls the world’s first 10Ah lithium-metal solid-state battery with an energy density of 500 Wh/kg. Its silicon-based 400 Wh/kg solid-state battery has already achieved a cycle life exceeding 1,100 cycles and is ready for mass production. Meanwhile, Dongfeng Motor announced that its 350 Wh/kg semi-solid-state battery will go into mass production and be installed in vehicles by September 2026, while GAC Group confirmed that its 400 Wh/kg quasi-solid-state battery will be deployed in vehicles within the year. In new application areas such as drones, Talent New Energy showcased mass-production-grade solid-state battery solutions ranging from 380 to 550 Wh/kg at the Shenzhen Drone Expo, with cumulative shipments of its drone-series cells already reaching hundreds of thousands of units. Industry consensus is emerging that 2026 could be a pivotal year for solid-state battery industrialization.

3. Exports Rise in Both Volume and Price, Upstream Raw Material Prices Trend Upward

From January to April 2026, China’s lithium-ion battery exports reached 1.676 billion units, up 23.58% year-on-year, with export value surging 47.64% to US$31.925billion[reference:21].GermanyremainedthetopexportdestinationatUS$4.666 billion, while exports to the Netherlands soared 148% year-on-year. However, exports to the United States dropped 33.69% year-on-year amid trade protection measures. On the upstream front, prices of lithium, nickel, and cobalt have entered an upward trajectory, buoyed by robust downstream energy storage demand. Huayou Cobalt reported net profit of RMB 2.497 billion for Q1 2026, nearly doubling year-on-year, primarily driven by rising prices of its three core metals.

4. Green Compliance Takes Full Effect — Carbon Footprint Becomes a Must-Have Gateway

In 2026, the core provisions of the EU‘s New Battery Regulation officially take full effect. All EV and industrial batteries entering the EU market must now be accompanied by a digital Battery Passport that discloses over a dozen data points across the entire value chain, including carbon footprint, material provenance, and recycled content. The EU Carbon Border Adjustment Mechanism (CBAM) has also entered its full enforcement phase simultaneously. Across the Atlantic, the US Inflation Reduction Act (IRA) continues to tighten the domestic sourcing requirements for critical minerals. Carbon footprint management has evolved from an optional corporate initiative into a mandatory requirement, and it will fundamentally reshape the competitive dynamics of the global lithium battery supply chain.

Conclusion

The lithium battery industry is undergoing a pivotal transition — shifting from price wars to value-driven competition, and from large-scale expansion to precision operation. The continued explosion of the energy storage market provides robust growth momentum, while breakthroughs in new technologies like solid-state batteries open up new possibilities. At the same time, increasingly stringent international green compliance policies place higher demands on companies’ supply chain management and low-carbon capabilities. For industry participants, seizing growth opportunities while accelerating technological innovation and building robust compliance systems will be crucial to winning the next phase of competition.

As 2026 unfolds, the global lithium battery industry is undergoing a significant cyclical recovery. From an accelerating expansion cycle and a robust rebound in raw material prices to critical breakthroughs in solid-state battery technology, multiple signals point to the dawn of a new growth phase.

1. A More Rational Expansion Cycle

After two years of deep adjustment and capacity rationalization, China’s lithium battery supply chain is entering a new wave of expansion. Since April, multiple A-share listed lithium battery companies have disclosed capacity expansion announcements, spanning upstream lithium salts, midstream materials, and downstream battery manufacturing.

Unlike the blind expansion of two to three years ago, market observers generally view this round as more rational, underpinned by improving supply-demand dynamics, structural demand upgrades, and a reshaping of the profit landscape across the value chain. Notable projects include Putailai‘s RMB 5.6 billion lithium battery separator facility, Defang Nano’s approximately RMB 8.7 billion investment in phosphate cathode material production lines, and Sinomine Resource Group’s RMB 5.2 billion fundraising for lithium, copper, and cesium-rubidium mineral resource development.

Analysts note that the current expansion is not across the board but rather structurally differentiated. While low-end or commoditized capacity may face overcapacity pressure, high-end energy storage cells, high-nickel ternary materials, and premium capacity targeting overseas markets remain in short supply.

2. Lithium Carbonate Price Surges Past RMB 200,000/Ton

Since the start of 2026, lithium carbonate prices have been trending upward amid repeated oscillations. On May 11, the most-traded lithium carbonate futures contract on the Guangzhou Futures Exchange broke through the RMB 200,000/ton mark, representing a gain of over 250% from the trough of RMB 58,400/ton approximately one year ago and nearly 70% from the beginning of 2026.

The price rally has been driven by multiple factors on both the supply and demand sides. On the demand side, energy storage has far exceeded expectations and emerged as the core growth engine for lithium demand. On the supply side, ongoing disruptions—including the suspension of several lithium mines in Yichun, Jiangxi province due to mining license renewals, and policy adjustments affecting lithium ore exports from Zimbabwe—have tightened market conditions. Multiple institutions project that the lithium carbonate supply-demand balance will remain in a tight equilibrium throughout 2026.

3. Energy Storage Demand Remains Exceptionally Strong

The energy storage battery market continues to run hot. According to statistics, China’s energy storage lithium battery shipments reached a staggering 215 GWh in Q1 2026, up 139% year-on-year. Leading manufacturers are operating at near-full capacity, with order books generally filled through the end of 2026 or even into Q2 2027.

At the recently concluded CIBF 2026 (the 18th Shenzhen International Battery Technology Conference & Exhibition), energy storage booths drew notably more attention than other areas. Exhibitors reported that while customers were most concerned about pricing at last year’s event, delivery timelines have become the top priority this year. Professor Ouyang Minggao of Tsinghua University noted at the event that the average winning bid price for 4-hour energy storage batteries has already dropped below RMB 500/kWh, and with the extension of storage duration, the sector is poised for a period of immense opportunity over the next five years.

4. Solid-State Batteries Approach Commercialization Milestones

Solid-state battery technology is accelerating its transition from the laboratory toward industrialization. Industry experts and leading companies have recently reached a consensus that 2026 is likely to become the “inaugural year” for semi-solid-state batteries.

On the technology front, researchers from the Institute of Metal Research at the Chinese Academy of Sciences recently achieved a breakthrough in overcoming polymer-plasticizer incompatibility. The resulting solid-state lithium metal batteries demonstrated exceptional performance: when paired with a 4.7V high-nickel cathode, the battery cycled stably for 700 cycles at an ultrahigh rate of 20C (equivalent to a full charge-discharge in about three minutes), retaining 81.9% of capacity, while ampere-hour-scale pouch cells achieved an energy density of 451.5 Wh/kg.

On the corporate front, Gotion High-Tech announced plans to achieve 300 tonnes/year of lithium sulfide production capacity by 2026, scaling to 20,000 tonnes/year by 2027 and 50,000 tonnes/year by 2030, to support large-scale solid-state battery demand. Dongfeng Motor officially announced that its 350 Wh/kg semi-solid-state battery will enter mass production and be installed in vehicles by September 2026.

5. Market Outlook

Dongwu Securities forecasts that global power battery demand will grow 23% year-on-year in 2026, with total global lithium battery demand expected to reach 2,939 GWh, representing a 32.3% year-on-year increase. Meanwhile, profits across the midstream lithium battery segment are expected to nearly double for the full year of 2026, with industry prosperity set to continue rising.

The lithium battery industry stands at the threshold of a new cycle. Driven by the twin engines of EV power batteries and energy storage, coupled with accelerating breakthroughs in next-generation technologies such as solid-state batteries, the industry has shifted from extensive expansion to a new phase of high-quality growth.

From May 13 to 15, 2026, the 18th Shenzhen International Battery Technology Exchange and Exhibition (CIBF2026) was held at the Shenzhen World Exhibition & Convention Center, spanning an exhibition area of over 280,000 square meters across 14 themed halls and attracting nearly 3,200 domestic and international companies across the battery supply chain. The scale and energy of this year‘s CIBF mirror a profound structural transformation taking place within the lithium battery industry: a decisive shift from scale-driven expansion to quality-oriented growth fueled by technological innovation.

Shifting Winds: From “Price War” to “Value War”

In his opening address, Wang Zeshen, Secretary-General of the China Industrial Association of Power Sources, urged the industry to take innovation as its anchor and pivot from a destructive price war to a value-driven competition model. His call is firmly grounded in data: in 2025, China’s total battery exports reached US$82.279billion,up22.8$76.746 billion, a 25.55% increase, reflecting a steady rise in the share of high-value products. The competitive landscape is now defined by technology, performance, and integrated solution capabilities, not merely price tags.

Solid-State Batteries: Commercialization Signals Are Clear

Solid-state battery technology was the undisputed focal point of CIBF2026. A growing consensus among industry experts and leading manufacturers points to 2026 as the inaugural year for the mass deployment of semi-solid-state batteries.

Key developments include: Dongfeng Motor Group announced that its 350 Wh/kg semi-solid-state battery will enter mass production and be installed in vehicles as early as September 2026, achieving 72% energy retention at -30°C and supporting a range of over 1,000 km. SVOLT‘s Chairman Yang Hongxin revealed that multiple vehicle models equipped with 100 kWh hybrid solid-liquid batteries will begin volume production this September, with a second-generation product that doubles safety performance expected next year. Ganfeng Lithium reported that its 400 Wh/kg solid-state battery has exceeded 1,100 cycles in lifespan, while its world-first 500 Wh/kg-class 10 Ah product has entered small-batch mass production. Gotion High-Tech launched seven new battery products, with its all-solid-state battery surpassing 400 Wh/kg in energy density and its 2 GWh production line construction progressing on schedule.

Meanwhile, CATL‘s condensed-state battery and BYD’s sulfide-based all-solid-state battery have drawn industry-wide attention, with expected CLTC ranges exceeding 1,500 km and 1,000 km, respectively. Solid-state batteries are moving from the laboratory to the production line at an unprecedented pace.

Energy Storage Boom: Dual Engines of AI Computing and Green Power

Energy storage has become the primary growth engine for lithium battery demand. In Q1 2026, energy storage battery shipments accounted for 42.86% of China’s total battery output, a sharp increase of 9.26 percentage points over 2025; total energy storage lithium battery shipments reached 225 GWh, a staggering 139% year-on-year increase. In May, China‘s monthly lithium battery production scheduling hit a record 249 GWh, with energy storage cells accounting for 42.3% — the key driver of this record output.

The driving forces behind this growth are also evolving. According to the 2026 Energy Storage White Paper published by TÜV Rheinland, China’s energy storage sector is transitioning from policy-driven growth to market-led, high-quality development. Moreover, the rapid expansion of AI foundation model training and large-scale data center construction has generated enormous demand for backup and ancillary energy storage, bringing the sector into a new growth paradigm powered by both AI computing and green electricity storage.

Raw Materials and Supply Chain: Lithium Prices Rebound

The raw materials market is also sending positive signals. As of May 8, 2026, the average market price for battery-grade lithium carbonate stood at RMB 193,300 per ton, with cumulative gains of 11.67% over the previous two weeks. LFP cathode material for power batteries was quoted at RMB 65,700 per ton, up 11.83% over the same period. Tianqi Lithium stated at its shareholder meeting on May 20 that the global lithium supply-demand balance remains in a state of dynamic tightness in 2026, characterized by sustained demand growth interspersed with periodic supply disruptions.

Upstream material companies are also accelerating innovation. At CIBF2026, Cangzhou Mingzhu showcased an ultra-thin separator measuring just 4 microns in thickness, priced at only 1/20th of equivalent imported products. International giants like Arkema and Evonik presented one-stop service capabilities spanning resin, binder, and coating — signaling that upstream material suppliers are stepping from behind the scenes to play a more visible and value-adding role in the new energy ecosystem.

Policy Support: Regulatory Framework Strengthens

On the policy front, several landmark measures took effect. On April 1, 2026, the Interim Measures for the Management of Recycling and Comprehensive Utilization of Retired Power Batteries of New Energy Vehicles, jointly issued by MIIT and five other ministries, officially came into force — the first departmental regulation in China’s power battery recycling sector, establishing a legal framework for the sustainable disposal of retired batteries. Around the same time, the National Standardization Administration approved 23 mandatory national standard projects, including the Coding Regulations of Lithium-Ion Batteries, marking a significant step forward in industry standardization.

Conclusion

The message from CIBF2026 is clear: the lithium battery industry is undergoing a transformative period where technological iteration and market expansion are amplifying each other. With solid-state batteries accelerating toward commercialization, energy storage demand surging, and AI reshaping materials R&D, the competitive landscape of the new energy sector is being thoroughly reshaped.

Whether you are looking for next-generation high-energy-density cells, energy storage solutions, or reliable supplies of lithium battery materials and modules, our years of industry expertise and stable supply chain resources are at your service. Contact us today for the latest product portfolios and partnership opportunities.

After two years of price wars and industry shake-ups, the lithium battery sector is making a strong comeback. Entering the second quarter of 2026, the industry is entering a new cycle of substantial “volume and price growth” in terms of capital market performance, corporate profitability, and cutting-edge technological breakthroughs.

Market Recovery: Double Growth in Performance and Production

According to the latest financial data, the total net profit attributable to the lithium battery industry reached 46.321 billion RMB in Q1 2026, a year-on-year surge of 118%. The upstream material sector showed the greatest elasticity, with profits in copper foil and LFP cathode materials increasing over tenfold.

The core driver of this growth is energy storage. Driven by the data center construction boom and renewable energy grid integration, energy storage battery production grew 115% year-on-year in Q1 2026, becoming a key pillar of lithium demand.

Tech Frontiers: Major Breakthroughs at Tsinghua and Shandong University

The most eye-catching news recently comes from academia. Professor Zhou Guangmin’s team at Tsinghua University published new results on lithium-sulfur batteries in Nature. By combining AI with quantum chemistry, they developed a lithium-sulfur battery with an energy density of 549 Wh/kg, promising to greatly extend the endurance of drones and aviation equipment.

Meanwhile, Professor Si Pengchao’s team at Shandong University made progress in wide-temperature fast charging, developing battery technology that operates in extreme temperatures ranging from -60°C to 80°C, addressing the pain points of electric vehicles in cold and hot climates.

Supply and Outlook: Lithium Prices Remain High

On the supply side, due to factors such as the Zimbabwe mining ban and modifications to Jiangxi mines, lithium carbonate prices remain at a high level (approximately 170,000 to 180,000 RMB per ton). Although Goldman Sachs predicts lithium prices may peak in the first half of 2026, the continued explosion in energy storage demand will provide strong support.

Conclusion

The lithium battery market in 2026 has moved past low-price involution and entered a phase of high-quality development driven by energy storage demand and high-end technology. For industry players, focusing on next-generation technologies like solid-state and lithium-sulfur batteries, along with securing upstream resources, will be key to future success.

Introduction:
As we enter mid-2026, the lithium battery industry is witnessing a significant divergence driven by energy storage demand, AI power needs, and supply chain restructuring. From record-breaking production data in China to next-gen battery breakthroughs, here are the key takeaways for the week.

1. Market Momentum: Record-breaking Q1 Data
Despite being a traditional off-season, the Chinese lithium battery market saw explosive growth in Q1 2026. According to GGII, total shipments reached 525 GWh, a year-on-year increase of 67% .

• Energy Storage is the star player, with shipments growing by 139% YoY.

• Production remains high. In May 2026, production schedules among top-20 battery makers hit 249 GWh (up 6% MoM), marking three consecutive months of record highs.

2. Global Supply Chain: M&A Heats Up
Chinese battery material giant Huayou Cobalt has proposed a $210 million acquisition of Atlantic Lithium to gain control of the Ewoyaa Lithium Project in Ghana. This move highlights the ongoing trend of Chinese capital securing hard rock assets in Africa to solidify the raw material supply chain for the EV boom.

3. Technology Trends: The Race for “10C” and Solid-State
The technological landscape is evolving faster than ever:

• Extreme Fast Charging: CATL recently unveiled its 3rd Generation “Shenxing” battery, achieving an 10C charging rate (10-80% in just 3 minutes and 44 seconds). They also launched the “Qilin Condensed Battery” with an energy density of 350 Wh/kg targeting 1,500 km range.

• Future Chemistries: Researchers at Tsinghua University have developed a “molecular building block” technology to unlock the potential of Lithium-Sulfur (Li-S) batteries, which is crucial for the low-altitude economy (drones) . Meanwhile, CUHK has developed a molecular coating to enhance Lithium Metal Battery stability, a key step toward safe, high-voltage EVs.

4. Price Outlook: The “Real” Rally?
After the crash of 2022, lithium prices are finally rallying. However, unlike the last cycle, supply is not responding quickly. No major new projects have been launched since 2024, and miners are maintaining a “value over volume” strategy. Major banks like J.P. Morgan and Morgan Stanley are now forecasting a structural deficit starting in 2026.

Introduction: Cyclical Upturn Exceeding Expectations

As the first quarter of 2026 concludes, the global lithium battery industry has delivered a surprising report card. After years of cyclical adjustments, the industry has reached an inflection point leading to a “cyclical upturn”. From raw materials to cell manufacturing, key players across the supply chain have not only achieved revenue growth but also demonstrated strong profitability resilience. Based on recent research reports and the latest moves by leading companies, we believe the lithium battery industry is at the starting point of a new phase of high-quality development.

Financial Review: Q1 Results Beat Expectations, Leaders Take the Lead

In the first quarter of this year, the overall performance of the lithium battery sector exceeded market expectations. Taking industry giant CATL as an example, its Q1 2026 report showed operating revenue of 129.131 billion RMB, a year-on-year increase of 52.45%, and a net profit attributable to parent company of 20.738 billion RMB, up 48.52% year-on-year. This high growth is not an isolated case. HuaTai Securities research points out that the year-on-year net profit growth of listed companies in lithium battery sample links all exceeded 40%, with some sectors like Lithium Iron Phosphate (LFP) cathodes and electrolytes seeing growth rates exceeding 200% due to price hikes and utilization rate improvements.

Tech Frontier: The Fast-Charging and Solid-State Battery “Arms Race”

Technological innovation is the core engine driving this cyclical upturn.

Gotion High-Tech’s 5th Generation Battery: In mid-May, Gotion High-Tech is set to release its 5th generation LFP all-scenario battery at the Global Technology Conference in Hefei. This technology achieves an energy density of up to 205Wh/kg, with the super-fast charging version reaching an astonishing speed of charging from 10% to 70% in under 4.5 minutes, and a long-life version supporting 30 years of energy storage applications. This technology covers all scenarios from passenger cars and commercial vehicles to low-altitude flying vehicles, marking another breakthrough for the LFP technology route.

Solid-State/Half-Solid-State Acceleration: Beyond liquid battery upgrades, solid-state battery industrialization is accelerating. CATL’s Condensed Battery and Qingtao Energy’s semi-solid batteries have entered the vehicle installation or mass production phase, signaling that next-generation battery technology is moving from the lab to the market.

Global Supply Chain: Overseas Giants and the “White Gold” Race

Looking at the global landscape, the competition and cooperation in the lithium battery industry are equally intense.

LG Energy Solution & BMW Massive Deal: Recently, LG Energy Solution confirmed it has secured a cylindrical battery project order worth approximately 10 trillion KRW (approximately 53 billion RMB). Industry consensus suggests this order will supply BMW’s next-generation electric vehicles. This 10-year supply agreement not only locks in massive future production capacity but also solidifies the core position of cylindrical batteries (46 series) in the high-end EV market.

Lithium Resource Game Continues: Although the current price of battery-grade lithium carbonate has stabilized around 170,000 RMB/ton, a significant rebound from last year’s lows, global automakers are still racing to lock upstream resources (known as “White Gold”). GM and Ford are investing in miners or signing long-term agreements to secure supply, highlighting the strategic importance of raw material security in industry competition.

Outlook: Optimistic for the Price Hike Cycle and May Production

In the short term, production schedules for May remain strong. According to ICC data from ICC, sample battery companies show a month-on-month increase of 8.1% in production schedules for May, indicating rising demand momentum. With robust energy storage demand and high oil prices stimulating overseas electrification, the supply and demand across the lithium battery chain are becoming tight. We are optimistic about this upward cycle driven by demand recovery and new technology advancements.