In April, China's combined production of power and other batteries reached 184 GWh, a year-on-year increase of 34%. From January to April, the cumulative production amounted to 671 GWh, rising 28% compared to the same period last year. The growth rate for batteries this year has decelerated from over 69% to 28%. Due to weak demand for power batteries, the supply-demand balance is expected to gradually improve.
The proportion of power battery production installed in vehicles has been continuously declining. In 2021, the installation rate for power batteries produced was 70%; it fell to 54% in 2022, 50% in 2023, rose back to 50% in 2024, held at 44% in 2025, and dropped to 34% in April 2026. Within this, ternary battery installations accounted for 36%, while lithium iron phosphate (LFP) installations accounted for 33%. The installation activity for power batteries has reached a historical low.
Domestic demand for power battery installations in vehicles has shown exceptionally strong growth. In 2019, demand grew by 10%. The figures for subsequent years are: 64 GWh installed in 2020 (2% growth), 155 GWh in 2021 (143% growth), 295 GWh in 2022 (91% growth), 388 GWh in 2023 (32% growth), 548 GWh of lithium batteries in 2024 (41% growth), and 770 GWh of lithium batteries in 2025 (40% growth). In April 2026, lithium battery installations reached 62.4 GWh, a year-on-year increase of 15%.
The growth in battery demand for passenger vehicles has remained robust. In 2025, battery demand for battery electric passenger vehicles grew by 29%, while demand for plug-in hybrid passenger vehicles grew by 17%. Demand for batteries in battery electric trucks also saw significant growth, reaching 169%. From January to April 2026, battery installations grew by 15%, with strong growth in commercial vehicles, particularly a 61% surge in battery electric trucks in April. Battery usage in plug-in hybrid passenger vehicles grew by 15%.
Based on certification battery volume calculations, domestic new energy vehicle certifications reached 14.5 million units in 2025, a strong 24% year-on-year increase. This included 8.6 million battery electric passenger vehicles (up 35%) and 5.03 million plug-in hybrid passenger vehicles (up 7%). In April 2026, domestic installations for new energy vehicles were 895,000 units, down 14% year-on-year, with battery electric passenger vehicles at 536,000 units (down 16%) and plug-in hybrid passenger vehicles at 280,000 units (down 18%).
The competitive landscape among battery companies has formed a pattern where CATL and BYD Company Limited exhibit relatively stronger characteristics. In April 2026, CATL's share rose to 47.1%. BYD's share of domestic battery demand increased from 15% in 2020 to 26.9% in 2023, before declining to 17% in Q2 this year. The shares of other battery companies have also shown a clear trend of divergence. The concentration effect among top companies has slowed. The combined share of the top two companies, which was 72% in 2022, remains at 65% for CATL and BYD in 2026, leaving over 30% of the market for other players. Companies like Gotion High-Tech Co.,Ltd., CALB, Geely's Yao Ning, and Chu Neng Xin Neng have performed strongly this year.
The product differentiation advantage of LFP batteries is evident. BYD remains relatively strong but was in an adjustment period early this year. CATL's share in the LFP battery segment has surpassed BYD's since 2024. BYD's share continued to decline in 2026, down 5.6 percentage points from 2025. Eve Energy and Gotion High-Tech have shown strong performance. Sunwoda, REPT BATTERO, and Zhongqi Xinneng have seen notable improvements. As BYD has fully transitioned to LFP batteries, the advantage of the top four companies in ternary batteries—CATL, SVOLT, CALB, and LG—has become more pronounced. SVOLT has performed well recently. LG Energy Solution's statistical performance appears lower due to a decrease in Tesla's domestic sales proportion.
Currently, the main energy density range for batteries in battery electric vehicles is between 125 and 160 Wh/kg. In Q1 2026, the share of batteries in the 140-160 Wh/kg range was particularly notable, reaching 43%, up 16 percentage points year-on-year. In April 2026, the share of vehicle models with battery energy density above 160 Wh/kg was 10%, showing a significant recovery from 6% in the same period of 2025. This is mainly due to a rebound in high-end demand for ternary batteries. Products with energy density below 125 Wh/kg dropped to a 0% share in 2026.
With the decline in battery prices, the driving range of electric vehicles continues to increase. Currently, there is strong demand for premium electric vehicles. Policy pressures, such as upgrades from low-speed electric vehicles to mini-cars, have also driven this premium trend. In the second half of 2024, policies like trade-in programs revived the small car market, leading to popularity in mini electric vehicles and a subsequent decrease in average installed battery capacity. As the cost advantages of electric vehicles materialize, the structure of battery electric specialty vehicles is shifting towards heavy trucks, driving a surge in battery capacity requirements.
Regarding supply chain issues,整车 manufacturers are becoming increasingly powerful, further strengthening their control over battery companies and the upstream industrial chain, while also enhancing their grip on downstream brand marketing capabilities. Under the new energy system, the characteristic of "整车为王" (the vehicle manufacturer is king) will continue to be prominently reflected.
The competitive landscape in the battery market has not changed significantly in recent years. In April 2026, the number of supporting battery companies reached a low of 34. Due to relatively slow technological progress in the power battery market, coupled with clear scale growth characteristics and the development of new industry demands like energy storage, battery companies have experienced strong growth in production and installation volumes.
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