As we move into the second half of 2026, the lithium battery industry is shifting from pure capacity expansion to deep value refinement. The following trends are reshaping the global landscape and deserve close attention from all supply chain stakeholders.

1. Semi-solid-state batteries reach real-world delivery, settling the solid-state roadmap

Multiple leading automakers and battery manufacturers recently announced that semi-solid-state batteries have entered mass delivery in premium EVs, with energy densities exceeding 360 Wh/kg. At the same time, the industrialization timeline for all-solid-state batteries has become clearer, with sulfide-based systems emerging as the mainstream choice. Tier-1 players are planning GWh-scale production lines before 2027. This evolution elevates competition from incremental liquid-electrolyte upgrades to a fundamental revaluation of solid-liquid hybrid systems, creating new demands for high-nickel cathodes, lithium metal anodes, and specialty electrolytes.

2. Low lithium prices and the rise of sodium-ion hybrid solutions

Lithium carbonate prices continue to hover between 80,000 and 100,000 RMB per ton. While easing cost pressure for cell makers and OEMs, sustained low lithium prices are opening a commercial window for sodium-ion hybrid pack designs. Recently, multiple A00-class EVs and residential energy storage systems have adopted lithium-sodium hybrid configurations, cutting system costs by an additional 8–12% without compromising performance. This shift from “either/or” to “scenario-based synergy” signals that electrochemical energy storage has truly entered a phase of diverse technology coexistence.

3. EU Battery Regulation enforcement drives global recycling compliance

In 2026, the EU’s New Battery Regulation has moved into substantive verification stages, including carbon footprint declarations and minimum recycled content requirements. In direct response, leading Chinese recycling companies are accelerating closed-loop agreements with international automakers, pushing hydrometallurgical recovery rates beyond 98%, and exporting recycling capacity to Europe under an “urban mining” model. Going forward, green compliance capability will replace sheer production scale as the core ticket to global supply chain access.

Market Implications

For suppliers of materials, equipment, and solutions, the lithium battery market is no longer a seller’s paradise driven by shortage. Success now demands a combination of technological foresight, cost discipline, and international compliance readiness. As your strategic partner, we offer end-to-end consulting services—from cathode material sourcing to recycling system design—empowering you to seize the opportunities of this new cycle.

Several recent developments in the global lithium battery sector are worth your attention.

Solid-state batteries near commercialization. In June, Toyota completed road tests of its all-solid-state prototype EV with a range exceeding 1,000 km, targeting mass production by 2027. In China, companies such as WeLion and QingTao Energy have already integrated semi-solid-state cells into multiple vehicle models, with energy densities generally surpassing 350 Wh/kg. The shift from liquid to solid-state systems is accelerating, bringing supply chain opportunities in advanced materials and manufacturing equipment.

Regulatory compliance tightens. The EU’s new Battery Regulation made carbon footprint declarations mandatory as of July 1, 2026. All EV and industrial batteries entering the EU market must now include a carbon footprint statement, with maximum carbon thresholds to be phased in. Export-oriented firms need to go beyond cell performance and build transparent, low-carbon supply chains with digital traceability.

Lithium prices recover on demand revival. After a two-year low-price period, battery-grade lithium carbonate rebounded to around RMB 120,000 per tonne in Q2, supported by recovering EV and energy storage demand. According to CNESA, new energy storage installations in China grew over 40% year-on-year in the first half of 2026, with lithium-ion batteries dominating the additions.

In summary, technology shifts, green compliance, and raw material volatility are reshaping the lithium battery landscape. We recommend preparing for solid-state battery integration, assessing your EU compliance readiness, and adopting flexible raw material strategies to stay ahead.

As we pass the midpoint of 2026, the global lithium battery industry stands at the crossroads of a new wave of technological iteration and supply chain restructuring. Several recent developments clearly outline the key themes for the second half of the year.

Solid-State Batteries: Racing from the Lab to Mass Production

The most eye-catching recent news revolves around the industrialization of solid-state batteries. Following Toyota and Samsung SDI, CATL showcased its sulfide-based all-solid-state battery sample at an industry forum in June, featuring an energy density exceeding 450Wh/kg and reaffirming its plan for small-scale vehicle installation by 2027. Meanwhile, multiple second-tier Chinese manufacturers announced that semi-solid-state batteries entered vehicle delivery in Q2 2026, with premium EV models promising a range of over 1,000 kilometers. It is safe to say that 2026 has become the pivotal year for solid-state and semi-solid-state batteries moving from “technology validation” to “market introduction.”

Lithium Prices Stabilize at Lower Levels, Reshaping Cost Logic

On the raw material front, lithium carbonate prices have stabilized and fluctuated in the range of 80,000 to 100,000 RMB per ton after a year-long decline. Recently, several lithium mines in Australia announced production cuts, while new capacity from South American salt lakes ramped up slower than expected — clear signals of a supply-side shakeout. This low lithium price environment is forcing the entire industry chain to pivot from “scrambling for resources” toward “competing on manufacturing efficiency and recycling systems.” The improved predictability of battery costs is laying a solid foundation for the widespread affordability of energy storage and electric vehicles.

EU Battery Regulation Deepens Enforcement

For export-oriented companies, a development to watch carefully is the enforcement of the EU’s new Battery Regulation. Starting in 2026, carbon footprint declarations are mandatory for industrial and EV batteries. Recently, multiple energy storage products have been flagged by customs for non-compliance with these requirements. This “green trade barrier” is compelling Chinese lithium battery enterprises to accelerate the construction of zero-carbon factories and drive the digital traceability system of the battery passport. Regulatory compliance capability has become a core competitive factor for securing overseas orders.

Global Expansion of Chinese Players Enters the “Harvest Phase”

In recent news, battery plants in Hungary and Morocco have successively entered the equipment installation and commissioning stage. The localized production capacity of leading companies such as BYD and CATL in Europe is expected to begin coming online between late 2026 and early 2027. This milestone signals that the overseas expansion of China’s lithium battery industry has evolved from pure product export into a comprehensive output of technology, capital, and management expertise.

Looking ahead to the second half of the year, technological leaps and global compliance will be two unavoidable propositions. Companies that can master both trends simultaneously will gain an advantageous position in the next round of competition.

June Key Highlights:

• PISEN partners with Ganfeng and EVE: Tripartite alliance creates full “lithium resources + automotive-grade manufacturing” supply chain, bringing automotive standards to consumer batteries

• EVE’s H1 net profit up 95%-110%: Expected net profit of RMB 3.13-3.37 billion, signaling industry-wide profit recovery

• Solid-state battery commercialization gains momentum: Ganfeng’s 400Wh/kg cells achieve 800+ cycle life; 500Wh/kg products enter small-batch production

• Lithium carbonate price holds above RMB 170,000/ton: ESS demand and AI data center power needs become key price drivers

I. Industry Developments: From “Price Wars” to “Quality-First”

On June 24, PISEN—a 20-year veteran of the power bank industry—joined forces with Ganfeng Lithium and EVE Energy in Shenzhen to sign a strategic cooperation agreement under the theme “New National Standards · New Core Future.” The three parties announced the integration of “lithium resources + automotive-grade manufacturing” to build a safe, transparent, and high-quality national charging ecosystem. The collaboration is driven by the full implementation of the new national safety standard for power banks (GB 47372-2026), marking the industry’s transition from rapid expansion to a “quality-first” era.

PISEN Chairman Zhao Guocheng stated: “We are saying goodbye to low-quality internal competition and traffic-driven battles. We will reshape industry standards with automotive-grade requirements, moving the power bank industry from price competition back to safety as its core value.” This reflects a broader industry-wide shift from “scale expansion” to “precision investment.”

Notably, since early 2026, multiple A-share companies including Zhongke Electric, Dynanonic, Enjie, and Yongtai have announced the termination of major lithium battery investment projects, reallocating resources toward more competitive high-end capacity. Industry observers note that the sector is moving from a “land-grabbing” phase toward more rational investment decisions.

II. Market Performance: Sustained Upward Momentum

The lithium battery sector has delivered strong capital market performance. Through June 23, the lithium battery concept index has gained over 17% year-to-date, significantly outperforming the CSI 300 Index. The industry cycle has clearly entered an upward phase, with multiple institutions forecasting a volume-price rally ahead.

Production data corroborates this trend: six major lithium battery manufacturers reported combined production of approximately 175.7 GWh in June, up 68% year-over-year and 6% month-over-month, reflecting sustained industry strength.

EVE Energy’s profit guidance offers further validation—H1 2026 net profit is expected to grow 95%-110% year-over-year, with revenue up approximately 60%. This strongly indicates that profit recovery across the lithium supply chain is accelerating. Analysts expect the sector to experience a volume-price resonance upcycle as peak season approaches for both EV and ESS demand.

III. Technology Frontier: Solid-State Battery Commercialization Accelerates

Solid-state batteries are moving from labs to production lines. Ganfeng Lithium recently disclosed that it has established full-chain solid-state battery capabilities covering sulfide electrolytes, oxide electrolytes, and lithium metal anodes. Its 400Wh/kg cells have achieved over 800 cycle life with engineering validation complete, while 500Wh/kg products have entered small-batch production. The silicon-based system offers a 320-450Wh/kg product roadmap, with 320Wh/kg cells exceeding 1,000 cycles.

These breakthroughs signal that commercialization of next-generation battery technology is accelerating, potentially opening new growth ceilings for the new energy sector.

IV. Demand Landscape: From Single Driver to Triple-Pillar Support

The global lithium demand structure has undergone a fundamental shift. Industry experts point out that EV batteries form the demand base, ESS has become the core variable influencing lithium prices this year, and AI data center expansion is further driving ESS installation growth.

Leading ESS battery manufacturers are operating at full capacity, with some orders already booked through Q2 2027. Global ESS installations are projected to reach 455 GWh in 2026, up 40% year-over-year. The lithium battery industry is transitioning from a single-pillar (EVs) model to a “three-pillar” growth structure: EV batteries as the foundation, ESS as the high-growth engine, and AI computing infrastructure as an emerging demand driver.

As we move through the halfway mark of 2026, the lithium battery sector stands at a critical intersection of technological leaps, trade realignment, and shifting cost structures. Here are three must-watch developments and our independent insights.

1. All-Solid-State Batteries Enter Vehicle Validation Phase

On June 10, CATL announced the delivery of its first automotive-grade all-solid-state battery samples to partner automakers. Featuring an energy density of 500 Wh/kg and 4C fast-charging capability, mass production is slated for 2027 — a definitive step from the lab to engineering validation.
Our Insight: The arrival of solid-state batteries will fundamentally uplift range potential and safety margins, reshaping the landscape for high-end EV and consumer electronics batteries. Brands are advised to track manufacturing maturity among leading players and proactively evaluate supply chain transition timing.

2. US Energy Storage Battery Tariffs Begin to Bite

Since January 2026, the United States has raised tariffs on Chinese non-EV lithium batteries (storage, industrial, etc.) to 25% under Section 301. China Customs data reveals that from January to May 2026, lithium battery exports to the US fell 18% year-on-year, while total global export volume grew 23%, signaling a rapid demand shift toward Europe, the Middle East, and Southeast Asia. In parallel, leading Chinese manufacturers are accelerating factory builds in Mexico, Hungary, and Morocco.
Our Insight: Tariff pressure is compelling Chinese battery makers to accelerate globalized production. For overseas buyers, supply chain diversification is no longer optional. We recommend prioritizing suppliers with already operational overseas facilities to mitigate tariff exposure and shorten delivery lead times.

3. Lithium Price “Floor” Triggers Energy Storage Boom

As of June 19, battery-grade lithium carbonate averaged 80,500 yuan/tonne, down roughly 15% from the beginning of the year. This has driven energy storage battery pack prices to as low as 0.6 yuan/Wh (approx. $82/kWh). Coupled with continuously falling PV module costs, the levelized cost of electricity for solar-plus-storage projects in China has dipped below 0.2 yuan/kWh, markedly improving IRRs for commercial & industrial (C&I) and shared storage projects. BloombergNEF projects that global new energy storage installations will surpass 180 GWh for the first time in 2026.
Our Insight: The low-lithium-price environment provides an exceptional window for cost lock-in. Large energy consumers and project developers are encouraged to move swiftly — secure long-term battery supply agreements and accelerate high-quality project execution to fully capture the cost dividend.

Closing Remarks

Technology, trade policy, and raw material costs are jointly reshaping the lithium battery industry at depth. Maintaining a sharp eye on frontline trends is the only way to stay ahead. For further market insights or procurement strategy support, feel free to connect with our expert team.

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.