China Power Battery Installations Drop Sharply in February Amid Holiday Disruption

China power battery installations February figures showed a sharp decline as the Chinese New Year holiday temporarily disrupted industrial activity across the country. The seasonal slowdown significantly affected production schedules and installation volumes throughout the battery supply chain. Despite the drop in installations, battery manufacturing remained relatively strong, reflecting sustained long-term demand from the electric vehicle and energy storage sectors across China’s rapidly expanding electrification ecosystem.

Holiday Disruption Drives Decline in Battery Installations

Power battery installations in China reached 26.3 GWh in February, representing a 24.64 percent year-on-year decline and a 37.4 percent drop compared with January. According to data released by the China Automotive Battery Innovation Alliance, the primary factor behind the contraction was the 2026 Chinese New Year holiday, which took place between February 15 and February 23. The holiday significantly interrupted factory operations and logistics activity, directly reducing installation volumes during the month.

LFP Batteries Continue to Dominate the Market

Lithium iron phosphate batteries maintained their dominant position in China’s power battery market despite the overall slowdown. Installations of LFP batteries totaled 20.6 GWh in February, accounting for approximately 78.3 percent of the total battery installations. However, this segment also experienced declines, with volumes falling 27.5 percent year-on-year and 36.9 percent month-on-month. In comparison, ternary lithium battery installations reached 5.7 GWh, representing 21.7 percent of the market during the same period.

Production Growth and Export Activity Remain Strong

While installations slowed, China’s battery production remained robust. Combined output of power and energy storage batteries reached 141.6 GWh in February, marking a 41.3 percent increase compared with the same period last year, although it declined 15.7 percent from January. LFP battery production totaled 114.6 GWh, rising 41.7 percent year-on-year, while ternary battery output reached 26.9 GWh with a 39.7 percent annual increase. China also exported 23.9 GWh of batteries during the month, reflecting 13.2 percent year-on-year growth.