China’s power battery sector saw robust growth in July 2026, with installations rising at the fastest pace so far this year. Lithium iron phosphate (LFP) batteries reached a new record share, while exports of both power and energy-storage batteries posted significant gains.
July 2026 Battery Installation Trends
According to data released by the China Automotive Battery Innovation Alliance (CABIA), domestic power battery installations reached 74.6 GWh in July, marking a 33.5% increase year-on-year. This growth rate surpassed June’s 31.4% and represents the highest pace recorded in 2026.
Despite the year-on-year surge, July installations declined by 2.5% compared to June, ending four consecutive months of sequential growth. This decrease aligns with the typical seasonal slowdown in China’s auto market during July.
LFP and Ternary Battery Market Shares
LFP batteries continued to drive growth, with installations reaching 63.1 GWh in July—up 40.5% year-on-year and down 1.0% from June. LFP batteries accounted for 84.6% of total installations, a record high and an increase from 83.3% in June. This marks the second consecutive month that LFP technology set a new record for market share.
Ternary battery installations totaled 11.1 GWh in July, up 1.8% year-on-year but down 12.6% from June. Their share fell to an all-time low of 14.9%, compared to 16.6% in June. Ternary battery installations have now declined for two consecutive months.
Year-to-Date Performance
In the first seven months of 2026, China’s cumulative power battery installations reached 410.2 GWh, up 15.4% year-on-year. This represents an acceleration from the 12.0% growth seen in the first half of the year.
LFP batteries made up 335.1 GWh, or 81.7% of total installations during this period.
Battery Production and Sales
Combined output of power and energy-storage batteries in July reached 218.0 GWh, a 62.9% increase year-on-year and a 5.8% rise from June. Cumulative output for the first seven months totaled 1,286.9 GWh, up 54.9% year-on-year.
Combined sales of power and energy-storage batteries in July were 185.2 GWh, up 45.5% year-on-year but down 5.5% from June. Power battery sales accounted for 129.1 GWh, while energy-storage battery sales reached 56.1 GWh.
Export Performance
Exports of power and energy-storage batteries totaled 35.2 GWh in July, up 51.7% year-on-year but down 2.7% from June. Exports represented 19.0% of total battery sales for the month.
Power battery exports reached 24.0 GWh, up 62.1% year-on-year, while energy-storage battery exports were 11.3 GWh, up 33.4% year-on-year and 4.9% higher than June. Cumulative exports for the first seven months of 2026 stood at 216.6 GWh, up 43.9% year-on-year and accounting for 18.6% of total sales.
Global Market Position
Seven Chinese companies ranked among the top 10 globally, together holding a 72.4% share of the global EV battery market.
Why this matters
The latest figures highlight the rapid expansion of China’s battery industry, with LFP batteries gaining a dominant position in both domestic installations and exports. The strong growth in exports and production underscores China’s significant role in the global battery supply chain.
What this means for buyers
Buyers and industry observers can expect continued availability of LFP battery technology, which now represents the majority of installations in China. The ongoing growth in exports may also influence battery availability and technology choices in overseas markets.
Key Specs
- July 2026 Power Battery Installations: 74.6 GWh
- Year-on-Year Growth (July 2026): 33.5%
- LFP Battery Share (July 2026): 84.6%
- Ternary Battery Share (July 2026): 14.9%
- LFP Installations (July 2026): 63.1 GWh
- Ternary Installations (July 2026): 11.1 GWh
- Battery Exports (July 2026): 35.2 GWh
- Top 10 Global Market Share (Chinese Companies): 72.4%
Source
Images sourced from: worldcrunch.com
