The Zhitong Finance App learned that in August, China's total power and other battery production was 237 GWh, an increase of 33% over the previous year; in January-August, China's total output of power and other batteries was 1,524 GWh, an increase of 32% over the previous year. The battery growth rate dropped from over 60% to 32% this year. In August 2026, the proportion of power battery production loaded to 33%, with ternary battery loading rate 27% and lithium iron phosphate loading rate 35%.
In August 2026, 79 GWh of lithium batteries were loaded, an increase of 26% over the previous year. From January to August 2026, 489 GWh of lithium batteries were loaded, an increase of 17% over the previous year. In August 2026, the domestic NEV market loaded 1.15 million units, down 3% year on year, including 760,000 pure electric passenger cars, up 4% year on year; 310,000 hybrid passenger cars, down 22% year on year; 71,000 pure electric trucks, up 32% year on year.
Currently, the main battery energy density range for pure electric vehicles is between 125 and 160. In particular, the outstanding performance in the 3rd quarter of 2026 was that 140 to 160 batteries accounted for 51%, an increase of 14 percentage points over the previous year. The proportion of models with a battery energy density above 160 in the 3rd quarter of 2026 was 9%. Compared with 7% in the same period in 2025, there was a clear recovery. This is mainly due to a recovery in high-end demand for three yuan. Meanwhile, products with an energy density below 125 will drop to 0% in 2026.
The share of domestic battery demand in the Ningde Era (300750.SZ) rose to 42.3% in July-August 2026, and the share of domestic battery demand for BYD (002594.SZ) rose from 15% in 2020 to 26.9% in 2023, to 20.3% in the 3rd quarter of this year. The share of other battery companies is also clearly divided. Battery companies have formed a characteristic of slowing down the agglomeration effect of leading companies. The top two companies, Ningde and BYD, will maintain a ratio of 63% from 72% in 2022 to 2026, and other companies have room for more than 36%. Guoxuan Hi-Tech, China Airlines, Geely Yaoning, and Chu Neng Xinneng performed well this year.
1. Analysis of overall production characteristics of power batteries
In August, China's total output of power and other batteries was 237 GWh, up 33% year on year; in January-August, China's total power and other battery production was 1,524 GWh, up 32% year on year. The battery growth rate dropped from more than 60% to 32% this year. Due to sluggish demand for power batteries and export tax rebate adjustments, battery demand gradually decelerated.
Currently, the proportion of batteries loaded in power battery production is constantly decreasing. In 2021, the battery loading rate reached 70%; 54% in 2022; 50% in 2023; 50% in 2024; 50% in 2024; the proportion of loading in power battery production remained at 50%; in 2025, the proportion of loading in power battery production dropped to 44%, and in August 2026, the proportion loaded in power battery production dropped to 33%, with the loading rate of ternary batteries being 27% and the loading rate of lithium iron phosphate 35%.
The boom in power battery loading reached a historically low level this year. With the introduction of truck subsidies, the proportion of cars loaded this year has gradually increased.
With the development of energy storage and other industries, especially the world energy crisis brought about by the Russian-Ukrainian crisis, demand for batteries in energy storage and other industries grew rapidly, causing the share of batteries loaded to drop significantly, but the market decline at the beginning of the year led to a decline in the share. Both power batteries and energy storage batteries are overproduced and inventories are under high relative performance pressure. The growth rate of power batteries in 2021 and 2022 is lower than the overall vehicle growth rate. In 2023 and 2024, power battery loading was low, and battery production remained the same as the loading growth rate. Battery production was high in 2026, and the start of loading was low. The loading rate fell to a recent low in February 2026, and recovered well in August.
2. The three-yuan share of domestic models with certified batteries is picking up
Demand for power battery loading is growing at a very high rate. Demand increased 10% in 2019; power battery loading for domestic models was 64GWh in 2020, demand increased by 2%; power batteries were loaded in 2021, demand increased by 143%; 295GWh was loaded in 2022, demand increased by 91%; 388GWh was loaded in 2023, demand increased 32%; in 2024, lithium batteries were loaded at 548 GWh, an increase of 41% year on year; in 2025, lithium batteries were loaded at 770 Wh, an increase of 40% year on year. In August 2026, 79 GWh of lithium batteries were loaded, an increase of 26% over the previous year. From January to August 2026, 489 GWh of lithium batteries were loaded, an increase of 17% over the previous year.
3. Demand growth for automotive batteries is slowing down
Demand for passenger car batteries continues to grow strongly. Battery demand for pure electric passenger cars increased by 29% in 2025, while battery demand for plug-in hybrid passenger cars increased 17%, continuing to grow strongly. Demand for batteries for electric vans has also increased dramatically, reaching 169%.
Battery loading increased 17% from January to August 2026. Among them, commercial vehicles grew strongly. In particular, pure electric trucks soared 57% in August, while battery usage for pure electric passenger vehicles increased 22%.
Judging from the proportion of batteries loaded, the demand structure for power batteries has changed rapidly in recent years. 2020 is still the pattern of pure electric passenger cars first, pure electric buses second, and pure electric special vehicles third, while plug-in hybrid passenger cars are only in fourth place. By 2026, pure electric passenger cars will remain in first place, while plug-in hybrid passenger cars will drop to third place, pure electric trucks will rise to second place, plug-in hybrid special vehicles will maintain fourth place, and pure electric buses will drop to fifth place.
In recent years, the market for pure electric buses has declined sharply, while the amount of batteries used in pure electric special vehicles has continued to rise rapidly. At present, the battery usage of pure electric passenger cars and plug-in hybrid passenger cars has dropped dramatically, while the battery usage of heavy trucks has increased dramatically. The advantages of high subsidies for heavy trucks brought about by new energy subsidies have led to a trend of battery differentiation.
4. Vehicle certification production
According to certified battery capacity estimates, in 2025, there were 14.5 million domestic certification certificates for new energy vehicles, an increase of 24% over the previous year, including 8.6 million pure electric passenger vehicles, an increase of 35% over the previous year; 5.03 million plug-in passenger cars, an increase of 7% over the previous year; and 780,000 pure electric special vehicles and trucks. This production data is very strong.
In August 2026, the domestic NEV market loaded 1.15 million units, down 3% year on year, including 760,000 pure electric passenger cars, up 4% year on year; 310,000 hybrid passenger cars, down 22% year on year; 71,000 pure electric trucks increased 32%. This production data is seriously fragmented.
5. Supporting battery companies are far from fully competitive
The competitive landscape of the battery market has not changed significantly in the past few years. In August 2026, the number of supporting battery companies reached a low level of 31 during the year. Due to price differences in the power battery market, and the characteristics of scale growth are relatively obvious. Coupled with the development of demand in new industries such as energy storage, battery companies have obtained strong characteristics of increased production and loading volume.
6. Differentiation of battery charge for various models
As battery prices fall, the range of electric vehicles continues to increase. Currently, there is a strong demand for high-end electric vehicles in the electric vehicle market. Instead, it is similar to “old man music” upgrading to small mini cars, and policy pressure is high, leading to obvious high-end technology. In the second half of 2024, with the promotion of trade-in and other policies, the car market picked up, and mini electric vehicles became popular, leading to a decline in installed batteries. As the cost advantages of electric vehicles were reflected, the structure of pure electric special vehicles developed towards heavy trucks, driving a sharp increase in charged capacity.
As far as supply chain issues are concerned, automakers will become more and more powerful in the future, their ability to control battery companies and the upstream industry chain will be further strengthened, and at the same time, their control over downstream brand marketing capabilities will also be further strengthened. Under the new energy system, the characteristics of “the whole vehicle is king” will continue to be further reflected.
7. Batteries with high energy density need to recover
Currently, the main battery energy density range for pure electric vehicles is between 125 and 160. In particular, the outstanding performance in the 3rd quarter of 2026 was that 140 to 160 batteries accounted for 51%, an increase of 14 percentage points over the previous year.
The proportion of models with a battery energy density above 160 in the 3rd quarter of 2026 was 9%. Compared with 7% in the same period in 2025, there was a clear recovery. This is mainly due to a recovery in high-end demand for three yuan. Meanwhile, products with an energy density below 125 will drop to 0% in 2026.
8. Battery enterprise pattern
The competitive landscape of battery companies has formed a relatively strong characteristic of the Ningde era and BYD. In the Ningde era, the share of domestic battery demand rose to 42.3% in July-August 2026, and BYD's share of domestic battery demand rose from 15% in 2020 to 26.9% in 2023, to 20.3% in the 3rd quarter of this year. The share of other battery companies also showed a clear trend of differentiation. Battery companies have formed a characteristic of slowing down the agglomeration effect of leading companies. The top two companies, Ningde and BYD, will maintain a ratio of 63% from 72% in 2022 to 2026, and other companies have room for more than 36%. Guoxuan Hi-Tech, China Airlines, Geely Yaoning, and Chu Neng Xinneng performed well this year.
The product differences and advantages of lithium iron phosphate batteries are obvious. BYD is still relatively good, and its export performance is very strong. The share of lithium iron phosphate batteries in the Ningde era continued to rise, and Everweft Lithium Energy and Guoxuan Hi-Tech performed well. Ruipu Lanjun and Geely Yaoning have improved markedly.
Due to BYD's complete transformation of lithium iron phosphate batteries, the advantages of ternary batteries from the top four companies, including Ningde Era, Honeycomb, Sunwoda, and LG, are even more obvious. Recently, Great Wall Motor's honeycomb energy performance has been relatively good. LG New Energy's statistical performance is poor due to the decline in Tesla's domestic sales ratio.