China’s electric-vehicle battery industry is keeping up a strong growth pace in 2026 while also expanding its footprint beyond the domestic market. The latest data available as of September 2026 show that seven Chinese manufacturers are now among the world’s ten largest suppliers, together holding 72.8% of the global EV battery market, while Chinese power-battery exports grew more than 50% in the first seven months of the year.
The Chinese battery market in 20 seconds
- Global EV battery usage reached 725.2 GWh between January and July, up 20.4%.
- Seven Chinese manufacturers in the top 10 accounted for 72.8% of the global market.
- CATL leads with a 39.9% share, followed by BYD with 14.7%.
- China installed 410.2 GWh of batteries in vehicles through July, up 15.4%.
- Chinese power-battery exports reached 146.7 GWh, up 52.1%.
The 2026 picture is no longer just that of a Chinese industry propped up by its huge domestic EV market. Manufacturers are increasing sales outside China, winning new international customers, and expanding capacity in other regions, all while keeping a clear lead in lithium iron phosphate (LFP) batteries.
Growth, however, is moving at two speeds. While domestic installations of automotive batteries are climbing at a double-digit rate, production is growing much faster still. That is forcing the sector to lean increasingly on exports and energy storage to absorb its installed capacity.
China now holds close to three-quarters of the global market
SNE Research published its January-July data on September 7, 2026. Global battery usage installed in electric, plug-in hybrid, and hybrid vehicles reached 725.2 GWh, up 20.4% from the same period in 2025.
In July alone, 116.0 GWh was used, up 22.1% year-on-year — faster than the year’s cumulative growth rate.
Most of that market is already in the hands of Chinese companies.
Global EV battery market, January-July 2026
| Rank | Manufacturer | Country | Battery usage | Global share | YoY change |
|---|---|---|---|---|---|
| 1 | CATL | China | 289.6 GWh | 39.9% | +26.6% |
| 2 | BYD | China | 106.7 GWh | 14.7% | +4.7% |
| 3 | LG Energy Solution | South Korea | 60.3 GWh | 8.3% | +4.5% |
| 4 | CALB | China | 37.3 GWh | 5.1% | +34.3% |
| 5 | Gotion High-tech | China | 34.0 GWh | 4.7% | +44.2% |
| 6 | Panasonic | Japan | 26.2 GWh | 3.6% | +7.6% |
| 7 | EVE Energy | China | 25.0 GWh | 3.4% | +53.1% |
| 8 | SK On | South Korea | 22.3 GWh | 3.1% | -9.8% |
| 9 | SVOLT | China | 18.9 GWh | 2.6% | +39.1% |
| 10 | REPT | China | 16.9 GWh | 2.3% | +118.5% |
Source: SNE Research. Shares are calculated against the 725.2 GWh global market total.
CATL remains clearly ahead of the pack. The company reached 289.6 GWh and lifted its share from 38.0% to 39.9% in a year.
BYD holds on to second place, though with a much more modest trajectory. Its 106.7 GWh represents 4.7% growth, well below the market average, and its share slipped from 16.9% to 14.7%.
Between them, the two companies control 54.6% of all EV batteries installed worldwide.
But China’s advance isn’t limited to CATL and BYD. CALB grew 34.3%, Gotion 44.2%, EVE 53.1%, and SVOLT 39.1%. REPT entered the top 10 for the first time, with growth of 118.5%.
The seven Chinese groups in the ranking together account for 72.8% of the global market, 3.1 percentage points more than a year earlier.
CATL and BYD no longer depend solely on China
That international expansion is also changing the nature of that lead.
In the first half of 2026, the EV battery market installed outside China reached 269.0 GWh, up 26.3% year-on-year.
CATL and BYD together accounted for 44.1% of the non-Chinese market, a sign that these manufacturers’ international presence no longer depends solely on exports of vehicles built in China.
CATL supplies batteries to international automakers such as Tesla, BMW, Mercedes-Benz, and Volkswagen, in addition to numerous Chinese groups.
BYD, a name that keeps drawing scrutiny in Washington alongside other Chinese tech giants, has a different structure, since a significant share of its batteries ends up in its own vehicles. That partly explains why the slowdown in its domestic sales has curbed growth in its battery division.
However, BYD’s vehicle exports are offsetting some of that weakness. In August, its international sales reached 189,466 vehicles, up 134.5% year-on-year.
Chinese manufacturers’ international expansion is thus happening through two channels: direct battery sales to third parties, and the overseas growth of the automakers’ own brands.
China installs 410.2 GWh in vehicles through July
Within China, the market is also trending positive.
Power-battery installations reached 74.6 GWh in July, up 33.5% year-on-year — the largest year-on-year growth recorded so far in 2026.
Between January and July, 410.2 GWh were installed, up 15.4% from the same period in 2025.
China’s monthly power-battery installations
| Month | 2025 | 2026 | Approx. change |
|---|---|---|---|
| January | 38.8 GWh | 42.0 GWh | +8.2% |
| February | 34.9 GWh | 26.3 GWh | -24.6% |
| March | 56.6 GWh | 56.5 GWh | -0.2% |
| April | 54.1 GWh | 62.4 GWh | +15.3% |
| May | 57.1 GWh | 71.9 GWh | +25.9% |
| June | 58.2 GWh | 76.5 GWh | +31.4% |
| July | 55.9 GWh | 74.6 GWh | +33.5% |
Source: China Automotive Battery Innovation Alliance (CABIA).
The data show a clear rebound after a weak first quarter. February was hit by seasonality tied to Chinese New Year, while growth kept accelerating from April onward.
For 2026 as a whole, CABIA had previously estimated installations of around 888.7 GWh, up 15.8% from the 769.8 GWh recorded in 2025. That forecast implies the sector will keep growing, though at a much slower pace than the 40.4% recorded last year.
LFP hits a record 84.6% share
One of the clearest shifts in the Chinese market is the growth of lithium iron phosphate (LFP) batteries.
In July, 63.1 GWh of this chemistry was installed, up 40.5% year-on-year.
Its share reached 84.6%, the highest on record and the second consecutive monthly high.
Ternary batteries, typically based on combinations of nickel, manganese, and cobalt, were down to 11.1 GWh and a 14.9% share.
China’s chemistry mix, July 2026
| Technology | Installations | Share | YoY change |
|---|---|---|---|
| LFP | 63.1 GWh | 84.6% | +40.5% |
| Ternary | 11.1 GWh | 14.9% | +1.8% |
| Other | ~0.4 GWh | ~0.5% | — |
Source: CABIA.
LFP’s dominance comes down mainly to three factors: lower cost, the absence of nickel and cobalt, and better thermal-stability characteristics.
Its historical drawback has been lower energy density, though advances in cell and pack design have narrowed some of that gap.
CATL and BYD have also turned LFP into one of their main selling points internationally.
1.29 TWh of production in just seven months
The figure that best captures the pressure building on the sector isn’t automotive battery installations, but total production.
China produced a combined 218.0 GWh of batteries for vehicles and energy storage in July, up 62.9% year-on-year.
Between January and July, cumulative production reached 1,286.9 GWh — nearly 1.29 TWh — up 54.9%.
China’s battery industry, January-July 2026
| Indicator | Volume | YoY change |
|---|---|---|
| Power + storage battery production | 1,286.9 GWh | +54.9% |
| Power battery installations in China | 410.2 GWh | +15.4% |
| Total power + storage exports | 216.6 GWh | +43.9% |
| Power battery exports | 146.7 GWh | +52.1% |
| Storage battery exports | approx. 69.9 GWh | — |
Source: CABIA.
The gap between producing 1,286.9 GWh and installing 410.2 GWh in Chinese vehicles shows that production growth is running well ahead of domestic automotive demand.
Some of it goes into stationary batteries, another part sits in inventory, and a growing share heads overseas.
Exports grow more than 50%
In July, China exported 35.2 GWh of power and storage batteries, up 51.7% year-on-year.
Of that total, 24.0 GWh were EV batteries, a 62.1% year-on-year increase.
Over the first seven months, combined exports reached 216.6 GWh, up 43.9%.
Batteries specifically meant for automotive use added up to 146.7 GWh, growing 52.1%.
China’s monthly power-battery exports
| Month | 2025 | 2026 |
|---|---|---|
| January | 11.1 GWh | 17.7 GWh |
| February | 12.8 GWh | 16.9 GWh |
| March | 13.9 GWh | 22.3 GWh |
| April | 14.5 GWh | 20.2 GWh |
| May | 13.5 GWh | 20.1 GWh |
| June | 15.8 GWh | 25.5 GWh |
| July | 14.8 GWh | 24.0 GWh |
Source: CABIA.
The international share is becoming large enough to turn into a structural factor for the sector.
In July, power and storage battery exports accounted for around 19% of all Chinese sector sales.
Energy storage becomes the sector’s second big market
Chinese battery manufacturing also no longer depends solely on electric vehicles.
Sales of energy-storage batteries reached 56.1 GWh in July, up 55.4% year-on-year.
Over the first half of the year, they reached 318.1 GWh, growing 83.4%.
The global stationary storage market is also growing fast. In the first half of 2026, 461.3 GWh of ESS batteries shipped worldwide, up 71% year-on-year.
CATL led this segment with a 27.1% share, followed by EVE Energy with 10.4%, Hithium with 10.0%, and BYD with 7.7%.
In other words, China is replicating in storage a structure similar to the one it previously built in automotive.
Growth is also creating excess capacity
The strong numbers mask a problem.
Chinese production is growing roughly three times faster than domestic installations of vehicle batteries.
That imbalance is intensifying competition among manufacturers, putting pressure on prices, and forcing the industry to push harder on international sales — the same pressure that pushed a battery-materials supplier like EcoPro BM to accelerate its European expansion even as the EV market slows.
The problem isn’t limited to electric vehicles. On September 7, 2026, it also emerged that Chinese authorities had temporarily frozen new approvals for certain battery factories aimed at energy storage.
The decision comes after years of rapid investment and reflects concern over possible industrial overcapacity.
The next stage for China’s battery sector will likely be shaped less by who can build the most gigawatt-hours and more by who can put them to profitable use.
SNE Research points precisely in that direction. Beyond scale, it expects factors such as the efficiency of international factories, customer diversification, product mix, and supply-chain traceability to carry increasing weight.
Europe will add another requirement starting in February 2027, with the phased rollout of the European battery passport, which will require detailed information on materials, manufacturing, and the supply chain.
China’s industrial lead remains very wide as of September 2026. CATL alone is close to 40% of the global market, seven Chinese manufacturers control nearly three-quarters of the top 10, and exports are growing above 50%.
The challenge is shifting.
China has already shown it can manufacture batteries at a scale that’s hard to match. Now it needs to show it can place all that capacity in international markets without turning its own expansion into an oversupply problem.
Frequently asked questions
What global share do Chinese battery manufacturers hold?
The seven Chinese manufacturers ranked among the top 10 accounted for 72.8% of the global market between January and July 2026, according to SNE Research.
Which is the largest EV battery manufacturer in the world?
CATL holds the top spot with 289.6 GWh between January and July 2026 and a 39.9% global share. BYD is second with 14.7%.
How many batteries does China install in its electric vehicles?
Between January and July 2026, China installed 410.2 GWh of power batteries, up 15.4% from the same period the previous year.
What battery type currently dominates in China?
LFP batteries are clearly the majority. In July, they accounted for 84.6% of the country’s power-battery installations, a new all-time high.
Sources:
- SNE Research, January-July 2026 Global EV Battery Usage Reaches 725.2 GWh, September 7, 2026.
- China Automotive Battery Innovation Alliance (CABIA), production, installation, and export data through July 2026, as compiled by CnEVPost.
- SNE Research, battery market outside China, first half of 2026.