China’s power battery market in July 2026 saw CATL maintain its top position, though its market share edged down while BYD continued to close the gap. New data from the China Automotive Battery Innovation Alliance (CABIA) highlights shifting dynamics among the country’s leading battery manufacturers, with lithium iron phosphate (LFP) batteries reaching a record share of the market.
CATL Remains Market Leader Despite Slight Decline
CATL continued to hold the largest share of China’s power battery market in July 2026, with domestic installations totaling 31.40 GWh. This gave CATL a 42.33% market share, though this figure fell by 0.37 percentage points compared to June. CATL’s installations also declined by about 3.7% from the previous month’s 32.59 GWh.
Despite the dip, CATL’s lead remains substantial, but the gap with its closest competitor is narrowing.
BYD Gains Ground as Market Share Increases
BYD ranked second in July, with power battery installations reaching 14.26 GWh and a market share of 19.23%. This represents a 0.74 percentage point increase from June, as BYD’s installations edged up 1.1% from 14.11 GWh.
The difference in market share between CATL and BYD narrowed to 23.10 percentage points, down from 24.21 percentage points in June. This marks the second consecutive month of contraction in the gap between the two companies.
Other Leading Battery Makers and Market Concentration
CALB held third place with 5.16 GWh installed and a 6.95% share, up 0.14 percentage points from June. Gotion High-tech followed with 4.66 GWh and a 6.29% share, while Eve Energy ranked fifth at 4.49 GWh and a 6.05% share.
Together, the top five battery makers accounted for 80.85% of the market in July, up from 80.34% in June, indicating a slight increase in industry concentration.
Ternary and LFP Battery Market Breakdown
In the ternary battery segment, CATL installed 8.43 GWh, raising its market share to 75.81%, up 3.25 percentage points from June. However, CATL’s ternary installations fell about 8.2% from June’s 9.18 GWh, as the overall ternary market contracted more sharply. China’s total ternary battery installations dropped 12.6% from June to 11.1 GWh, with their share of the overall market falling to a record low of 14.9%.
For LFP batteries, CATL installed 22.97 GWh, accounting for a 36.43% share, down 0.34 percentage points from June. BYD’s LFP installations matched its overall total at 14.26 GWh, giving it a 22.62% share, up 0.46 percentage points. The gap between CATL and BYD in the LFP segment narrowed to 13.81 percentage points. LFP batteries reached a record 84.6% of the overall market, marking the second consecutive month of record-high share for this technology.
Why this matters
The July 2026 data shows continued dominance by CATL and BYD in China’s battery market, with the top five suppliers increasing their collective share. The rising share of LFP batteries highlights a significant shift in technology preference within the industry.
These trends reflect ongoing changes in battery chemistry adoption and market concentration, which could influence supply chains and technology choices for automakers operating in China.
What this means for buyers
Buyers can expect to see more electric vehicles equipped with LFP batteries, which are now the dominant technology in China’s market. As leading battery makers like CATL and BYD continue to expand their presence, consumers may benefit from increased availability and potentially more competitive pricing on EVs using these battery types.
Key Specs
- CATL Market Share (July 2026): 42.33%
- CATL Installations (July 2026): 31.40 GWh
- BYD Market Share (July 2026): 19.23%
- BYD Installations (July 2026): 14.26 GWh
- Total Power Battery Installations (July 2026): 74.6 GWh
- LFP Battery Market Share (July 2026): 84.6%
- Ternary Battery Market Share (July 2026): 14.9%
- Top 5 Makers’ Combined Market Share (July 2026): 80.85%
Source
Images sourced from: electrek.co, globaltimes.cn
