English
French
German
Italian
Spanish
Portuguese
Dutch
中文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.
