China Power Battery Installations Reach 74.6 GWh in July 2026

China Power Battery Installations Accelerate in July

China Power Battery Installations climbed to 74.6 GWh in July 2026, extending a broader expansion in domestic battery demand while lithium iron phosphate batteries reached a record 84.6% share. The latest figures show how rapidly the Chinese electric vehicle industry is shifting toward lower-cost battery technology. Data released by the China Automotive Battery Innovation Alliance showed July installations increased 33.5% from a year earlier, although they declined 2.5% from June amid the traditional seasonal slowdown in the China automotive market. The July increase was also the fastest year-on-year growth recorded so far in 2026 and marked the fourth consecutive month of acceleration.

China Monthly Power Battery Installations, 2024-2026

The monthly installation data show that 2026 continued to build on the higher volumes recorded during 2025. July reached 74.6 GWh, compared with 55.9 GWh in July 2025 and 41.6 GWh in July 2024. The available figures also show strong growth through the second quarter, with installations reaching 62.4 GWh in April, 71.9 GWh in May and 76.5 GWh in June before the July seasonal decline. The comparison highlights the continued expansion of China’s battery installation market despite month-to-month fluctuations in vehicle demand.

LFP Batteries Reach Record Share

July marked a notable shift in battery chemistry mix as LFP batteries strengthened their dominance. Installations of LFP batteries reached 63.1 GWh, rising 40.5% year-on-year while easing 1.0% from June. Their share of total installations increased to a record 84.6%, compared with 83.3% in June, marking the second consecutive month in which LFP established a new record. By contrast, ternary battery installations totaled 11.1 GWh, up only 1.8% year-on-year and down 12.6% from June. Their share dropped to 14.9%, the lowest recorded level, as automakers continued favoring LFP for cost and safety advantages despite lower energy density.

Cumulative Installations and Battery Production Expand

China’s cumulative power battery installations reached 410.2 GWh during the first seven months of 2026, an increase of 15.4% from the same period a year earlier. That growth accelerated from 12.0% in the first six months, while LFP batteries accounted for 335.1 GWh, representing 81.7% of cumulative installations. The broader production picture was considerably stronger. Combined power and energy-storage battery output reached 218.0 GWh in July, increasing 62.9% year-on-year and 5.8% from June. Cumulative output reached 1,286.9 GWh in the first seven months, up 54.9%, more than three times the growth rate of domestic power battery installations.

China Battery Sales Show Strong Energy Storage Growth

Battery sales also expanded rapidly, although monthly volumes eased from June. Combined sales of power and energy-storage batteries reached 185.2 GWh in July, up 45.5% year-on-year but down 5.5% month-on-month. Power battery sales totaled 129.1 GWh, while energy-storage battery sales reached 56.1 GWh. Energy-storage battery sales increased 55.4% year-on-year, outpacing the 41.6% growth recorded by power batteries. However, energy-storage sales fell 10.3% from June, compared with a 3.3% decline for power batteries. The divergence highlights the growing importance of energy storage in absorbing battery production beyond domestic automotive installation demand.

Battery Exports Continue to Gain Importance

Exports continued to provide an important outlet for China’s expanding battery industry. Combined shipments of power and energy-storage batteries reached 35.2 GWh in July, increasing 51.7% year-on-year but declining 2.7% from June. Exports represented 19.0% of total battery sales during the month. Power battery exports totaled 24.0 GWh, up 62.1% year-on-year and down 5.9% from June, while energy-storage battery exports reached 11.3 GWh, up 33.4% year-on-year and 4.9% month-on-month. The figures indicate that overseas demand is becoming increasingly important as Chinese battery manufacturers expand beyond the domestic electric vehicle market.

China Monthly Power Battery and Energy Storage Battery Exports, 2024-2026

The export data demonstrate a sustained increase in overseas battery shipments across the three-year period. July 2026 combined exports reached 35.2 GWh, compared with 23.2 GWh in July 2025 and 15.6 GWh in July 2024. The 2026 monthly figures were also higher than the corresponding 2025 levels in every month through July, with March, April and June showing particularly strong volumes. This performance reinforces the growing role of international markets in absorbing battery production as domestic installation growth remains below the pace of manufacturing expansion.

China Monthly Power Battery Exports, 2024-2026

Power battery exports formed the largest portion of combined battery shipments in July. Exports reached 24.0 GWh during the month, up 62.1% year-on-year despite a 5.9% decline from June. The monthly series shows that July 2026 exports were substantially above the 14.8 GWh recorded in July 2025 and the 9.6 GWh recorded in July 2024. Through the first seven months, power battery exports totaled 146.7 GWh and increased 52.1% year-on-year, demonstrating that overseas demand is becoming an increasingly significant component of the Chinese battery industry's overall growth profile.

China Monthly Energy Storage Battery Exports, 2024-2026

Energy-storage battery exports also continued to expand, reaching 11.3 GWh in July 2026. The monthly increase was 33.4% from a year earlier and 4.9% from June, contrasting with the month-on-month decline in power battery exports. July energy-storage exports were also higher than the 8.4 GWh recorded in July 2025 and the 6.0 GWh recorded in July 2024. The stronger performance of energy-storage shipments supports the role of non-automotive demand in absorbing battery production, particularly as manufacturing capacity continues to grow faster than domestic power battery installations.

Cumulative Battery Exports Strengthen

During the first seven months of 2026, cumulative exports of power and energy-storage batteries reached 216.6 GWh, up 43.9% year-on-year and equivalent to 18.6% of total sales. Power battery exports alone totaled 146.7 GWh, representing 52.1% year-on-year growth. The monthly data also show that export momentum remained substantially stronger in 2026 than in the comparable periods of 2024 and 2025. This growing international exposure gives Chinese battery manufacturers another channel for absorbing production, particularly as domestic installation growth remains below the pace of manufacturing expansion. Overseas markets are therefore becoming increasingly important to the sector’s growth and capacity utilization outlook.

Production Growth Keeps Pressure on Battery Market

The widening gap between production growth and domestic installation demand remains a key issue for the battery industry. Cumulative battery output in the first seven months grew 54.9% year-on-year, compared with 15.4% growth in domestic power battery installations. Energy-storage demand and exports are absorbing part of the additional production, but the scale of the difference indicates that capacity utilization and pricing pressure have not yet fully eased. At the same time, the record LFP share shows that manufacturers and automakers are prioritizing cost and safety considerations. Together, these trends point to a market balancing rapid capacity expansion with changing battery chemistry preferences and stronger overseas demand.

Frequently Asked Questions

What were China’s power battery installations in July 2026?
China recorded 74.6 GWh of domestic power battery installations in July 2026, reflecting continued annual growth despite a monthly seasonal decline. Installations increased 33.5% from July 2025 but decreased 2.5% from June 2026. The annual growth rate was the fastest recorded so far during 2026 and represented the fourth consecutive month of accelerating year-on-year growth. The July decline from June was consistent with the traditional seasonal slowdown in China’s automotive market. LFP batteries accounted for the overwhelming majority of installations during the month.

What was the LFP battery share in July 2026?
LFP batteries accounted for 84.6% of China’s total power battery installations in July 2026, establishing a new record share for the technology. LFP installations reached 63.1 GWh, increasing 40.5% year-on-year while declining slightly from June. The share rose from 83.3% in June, marking the second consecutive monthly record. Ternary battery installations totaled 11.1 GWh, giving them a 14.9% share. The continued shift toward LFP reflects automakers’ focus on lower cost and safety, despite the chemistry’s typically lower energy density.

How important were exports to China’s battery industry?
Exports are becoming increasingly important as Chinese battery production continues to expand faster than domestic installation demand. Combined power and energy-storage battery exports reached 35.2 GWh in July 2026, up 51.7% year-on-year and representing 19.0% of total battery sales. During the first seven months, cumulative exports reached 216.6 GWh, increasing 43.9% year-on-year. Power battery exports alone totaled 146.7 GWh, while energy-storage demand provided an additional outlet. Overseas markets are therefore helping absorb additional production while supporting the international expansion of Chinese battery manufacturers.