In May, China's overall production volume of power and other types of batteries soared to 192GWh, reflecting a significant 38% year-on-year (YoY) surge. The cumulative production from January to May stood at 863GWh, also showing a robust 30% YoY growth. However, the pace of battery production growth has decelerated this year, dropping from over 69% to 30%, mainly attributable to the sluggish demand for power batteries.
Looking ahead to May 2026, the installed capacity of lithium batteries is projected to reach 72GWh, representing a 26% YoY increase. The cumulative installed capacity from January to May of that year is estimated to be 259GWh, up 7% YoY. Notably, the ratio of power battery production to installed capacity is expected to decline from 44% in 2025 to 38% in May 2026. Specifically, the installed rates for ternary batteries and lithium iron phosphate batteries are anticipated to be 38% and 37%, respectively.
In terms of energy density, the main batteries used in pure electric vehicles are predominantly concentrated within the 125 to 160Wh/kg range. From April to May 2026, batteries with an energy density between 140 and 160Wh/kg are expected to constitute 46% of the total, marking a notable 14 percentage point YoY increase.