China's battery supply chain sustains rapid growth, with energy-storage sales growth leading
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China's battery supply chain sustains rapid growth, with energy-storage sales growth leading
China's xEV and energy-storage battery production, sales, and exports continued to grow year over year in July 2026; cumulative energy-storage battery sales growth significantly outpaced power-battery growth, while lithium salt prices rose sharply year over year but declined month over month.
- July xEV and ESS battery production was 218.0GWh, up 63% year over year; cumulative production for the first seven months was 1,286.9GWh, up 55% year over year.
- July xEV and ESS battery sales were 185.2GWh, up 46% year over year; ESS battery sales were 56.1GWh, up 55% year over year.
- ESS battery sales in the first seven months totaled 374.2GWh, up 78% year over year, exceeding the 37% year-over-year growth rate for xEV battery sales.
- July battery exports were 35.2GWh, up 52% year over year; LFP power-battery exports were 14.6GWh, up 135% year over year.
- Lithium carbonate prices were RMB152,900/tonne in July, up 129% year over year but down 7% month over month.
Report interpretation
Overview
This report is a China battery monthly-monitoring chart pack published by Deutsche Bank, tracking monthly sales, production, exports, installations, and price changes for China's electric-vehicle (xEV) batteries, energy storage system (ESS) batteries, and upstream materials.
Core views
China's battery industry maintained rapid year-over-year expansion in July 2026, with LFP performing strongly in production, sales, and exports. Cumulative energy-storage battery sales growth led power-battery growth, indicating that energy-storage demand remains an important source of incremental industry growth. Most material prices increased year over year, with lithium salts posting particularly notable gains; however, lithium carbonate, lithium hydroxide, and certain anode-material prices declined month over month during the month.
Analysis framework
Using monthly and year-to-date cumulative metrics, the report compares year-over-year and month-over-month changes in production, sales, exports, and installations, with breakdowns by product type such as LFP and NCM and by major battery manufacturers; it also tracks prices for cells, cathodes, anodes, separators, electrolytes, and lithium salts.
Methodology notes
Observation of the linkage between production-sales inventory and prices
Monthly and year-to-date cumulative year-over-year and month-over-month data are used to observe changes in battery demand, supply, export mix, and supply-chain prices.
Comparison of technology-route composition
Production, sales, exports, and installations are separately calculated for LFP, NCM, and other battery products to identify relative growth across different chemistries.
Asset mapping & comparison
Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).
- CATLChina xEV battery installation manufacturer
- Strengths
- Domestic installations were 31.4GWh in July 2026, +36% YoY; cumulative installations for the first seven months were 185.7GWh, +22% YoY.
- Weaknesses
- July installations were -4% MoM.
- Comparison
- Its July installation volume ranked first among the manufacturers listed in the report, exceeding BYD, CALB, EVE, Gotion, and Zenergy.
- Risks
- Industry price fluctuations, monthly demand volatility, and changes in the competitive landscape.
- BYDChina xEV battery installation manufacturer
- Strengths
- Domestic installations were 14.3GWh in July 2026, +21% YoY and +1% MoM.
- Weaknesses
- Cumulative installations for the first seven months were 71.7GWh, -13% YoY.
- Comparison
- Its July installation volume ranked second among the manufacturers listed in the report, but its cumulative growth rate lagged CATL, CALB, EVE, Gotion, and Zenergy.
- Risks
- Pressure on cumulative installation growth and intensifying market competition.
- EVEChina xEV battery installation manufacturer
- Strengths
- Domestic installations were 4.5GWh in July 2026, +77% YoY; cumulative installations for the first seven months were 21.3GWh, +44% YoY.
- Weaknesses
- Absolute installation scale was below that of CATL and BYD.
- Comparison
- It recorded relatively rapid year-over-year growth among the manufacturers listed in the report.
- Risks
- Competition, price, and demand-volatility risks against the backdrop of a smaller scale.
- GotionChina xEV battery installation manufacturer
- Strengths
- Domestic installations were 4.7GWh in July 2026, +73% YoY; cumulative installations for the first seven months were 25.4GWh, +40% YoY.
- Weaknesses
- July installations were -6% MoM.
- Comparison
- Its July installation volume was slightly higher than EVE's but lower than CATL, BYD, and CALB.
- Risks
- Monthly installation volatility and industry competition risk.
Key data
- xEV and ESS Battery Production218.0GWh (July 2026, +63% YoY, +6% MoM)Cumulative production for the first seven months was 1,286.9GWh, +55% YoY.
- xEV and ESS Battery Sales185.2GWh (July 2026, +46% YoY, -6% MoM)Cumulative sales for the first seven months were 1,164.7GWh, +48% YoY.
- ESS Battery Sales56.1GWh (July 2026, +55% YoY, -10% MoM)Cumulative sales for the first seven months were 374.2GWh, +78% YoY.
- xEV Battery Sales129.1GWh (July 2026, +42% YoY, -3% MoM)LFP sales were 97.9GWh, +49% YoY; NCM sales were 30.8GWh, +21% YoY.
- xEV and ESS Battery Exports35.2GWh (July 2026, +52% YoY, -3% MoM)LFP xEV battery exports were 14.6GWh, +135% YoY; NCM exports were 9.3GWh, +11% YoY.
- xEV Battery Installations74.6GWh (July 2026, +33% YoY, -2% MoM)Cumulative installations for the first seven months were 410.2GWh, +15% YoY.
- Lithium Carbonate PriceRMB152,900/tonne (July 2026, +129% YoY, -7% MoM)Lithium hydroxide was RMB140,300/tonne, +136% YoY and -7% MoM.
Impact & implications
The data indicate that demand in China's battery industry remains resilient, with energy storage and LFP as the primary growth supports. Export growth, particularly the rapid increase in LFP exports, benefits companies with overseas supply capabilities and competitive products. At the same time, the sharp year-over-year rise and monthly pullback in lithium salt prices suggest that material costs and battery-company profitability should continue to be assessed in conjunction with subsequent price trends.
Risks
- The report is primarily a data chart pack and lacks detailed explanations of growth drivers, forecast assumptions, and implications for individual companies' earnings.
- Fluctuations in lithium salt and material prices may affect costs and profit allocation across the battery supply chain.
- Monthly data are subject to seasonality and month-over-month volatility; single-month changes should not be directly extrapolated as long-term trends.
- Export growth may be affected by overseas demand, trade policies, and supply-chain changes.
- Changes in battery technology routes and the competitive landscape among manufacturers may affect each company's installation share.
What to watch
- Whether ESS battery sales can sustain cumulative growth above that of xEV batteries.
- Whether LFP battery growth in sales, exports, and installations continues to outpace NCM.
- Whether month-over-month declines in lithium carbonate, lithium hydroxide, and electrolyte-salt prices continue.
- The sustainability of total xEV and ESS battery exports and rapid LFP export growth.
- Changes in monthly installation shares for CATL, BYD, CALB, EVE, Gotion, and Zenergy.