YIBIN, Sept. 4, 2026 — China’s power battery industry is moving from a stage of large-scale expansion into a new phase of high-quality upgrading, with the next wave of growth expected to be driven by all-domain electrification and a doubling of the market within five years. The shift was the central message at the 2026 World Power Battery Conference, held on Sept. 3 in Yibin, Sichuan, where industry leaders, researchers and policymakers gathered under the theme “Driving Everything with Electricity, Integrating and Coexisting.” The conference released the 2025-2026 Annual Power Battery Innovation Technology Achievements, the Power Battery Industry Development Index (2026), and the Power Battery Industry Development Vision and Technology Roadmap, placing the power battery sector at a historic turning point.
1. Conference Signals a New Phase for the Power Battery Industry
The 2026 World Power Battery Conference underscored that the power battery industry is no longer defined only by rapid capacity growth. Instead, it is entering a period in which technical performance, supply chain resilience, recycling systems and application diversification will determine competitive advantage. The conference’s theme reflected a broader vision in which the power battery becomes a foundational technology for transportation, energy storage, low-altitude aviation, robotics and other electrified applications.
The reports released at the event described the power battery industry as standing at a critical historical juncture. China has built a large manufacturing base and a complete industrial chain, but the next stage will require deeper innovation in materials, safety, fast charging, climate adaptability and digital intelligence. The power battery sector is therefore expected to move from a model based mainly on scale to one based on quality, efficiency and systemic coordination.
The conference also highlighted that the global power battery landscape is changing quickly. Supply chains are becoming more regionalized and localized, while competition among leading economies is intensifying. In this environment, the power battery industry must rely on coordinated technological progress and ecosystem development rather than on any single breakthrough. The message was clear: the next chapter of power battery growth will be broader, more complex and more closely connected to national energy and industrial strategies.
2. China’s Power Battery Leadership Highlighted by 2025 Data
Ouyang Minggao, an academician of the Chinese Academy of Sciences and a professor at Tsinghua University, presented key data showing the strength of China’s power battery sector. In 2025, China’s domestic power battery installations reached 769 GWh, up 40% year on year. Among the world’s top 10 power battery installation companies in 2025, six were Chinese, and their cumulative installed capacity accounted for 70% of the global total. These figures underlined China’s central role in the global power battery supply system.
China’s lithium-ion battery industry also recorded strong overall growth. In 2025, total lithium-ion battery shipments in China reached about 1,875 GWh, up 53% year on year, accounting for more than 80% of the global total. The power battery segment was a major contributor to this performance, supported by expanding demand from electric vehicles, energy storage and other electrified applications. The scale of China’s power battery and lithium-ion battery output has given the country an important base for further innovation and cost reduction.
| Indicator | 2025 figure | Change or share |
|---|---|---|
| China domestic power battery installations | 769 GWh | Up 40% year on year |
| China’s presence among the global top 10 power battery installers | 6 companies | Cumulative installed share of 70% |
| China lithium-ion battery total shipments | About 1,875 GWh | Up 53% year on year; more than 80% of the global total |
| Lithium battery cost level | 0.3 to 0.5 yuan per Wh | Down about 90% from the early stage |
The data also showed that China has made original technological contributions to the lithium-ion battery industry. The power battery sector has benefited from continuous improvements in energy density, charging speed, durability and cost. These advances have strengthened the position of the power battery as a core technology for the clean energy transition and have provided a platform for further breakthroughs in the 2.0 phase.
3. Technology Gains and Cost Reductions Expand Power Battery Capabilities
Ouyang outlined the technical progress achieved by China’s lithium battery industry. At the early stage, electric vehicle range was about 100 kilometers; it has now reached 1,000 kilometers. Charging time has been reduced from hours to about 10 minutes. Durability has improved from 300 cycles to 1,500 cycles for energy storage batteries. Economic performance has also improved dramatically, with costs falling by about 90% and now standing at 0.3 to 0.5 yuan per Wh.
These improvements have direct implications for the power battery industry. Higher range and faster charging address consumer concerns about electric vehicle usability. Longer cycle life supports the growing energy storage market, where power battery and storage battery technologies overlap and reinforce each other. Lower costs make the power battery more competitive across a wider range of applications and help accelerate the replacement of conventional energy systems.
At the same time, the power battery industry is being asked to deliver more than incremental improvements. Consumers now expect better range, faster charging, greater durability and comprehensive safety. Meeting these expectations requires progress across materials, cell design, thermal management, battery management systems and manufacturing quality. The power battery sector is therefore under pressure to combine scale with higher performance and greater reliability.
4. Industry Leaders Outline Challenges Facing Power Battery Supply Chains
Wan Gang, vice chairman of the 13th National Committee of the Chinese People’s Political Consultative Conference and honorary president of the China Association for Science and Technology, said the power battery industry still faces several urgent challenges. From an international perspective, the global trade landscape is undergoing profound adjustment. The layout of industrial and supply chains is becoming more regionalized and localized, placing higher demands on companies seeking orderly overseas development.
From a domestic perspective, some key core technologies still have shortcomings, and research into forward-looking and leading technologies needs to be strengthened. The recycling and reuse network for retired batteries also has bottlenecks. These issues are important for the long-term health of the power battery industry because they affect not only cost and resource security but also environmental performance and public trust.
The challenges described at the conference showed that the power battery industry cannot rely solely on past achievements. A resilient power battery supply chain requires international cooperation, stable standards, efficient recycling and continuous innovation. The sector must also manage the transition from rapid expansion to more orderly and sustainable growth, while maintaining the competitiveness that has made China a leading power battery producer.
5. Five Technology Leaps and Three Ecosystem Leaps Define Power Battery 2.0
Zhang Jinhua, president of the China Society of Automotive Engineers, said the global power battery industry is moving from scale expansion 1.0 to high-quality leap 2.0. For the 2.0 stage, the power battery industry needs to pursue five technology leaps: material systems, intrinsic safety, extreme fast charging, all-climate applications and digital intelligence. These five areas form the underlying capability that will support the next generation of power battery products.
The first leap, in material systems, is expected to improve energy density, safety and cost balance. The second, intrinsic safety, focuses on reducing risks at the cell and system level. The third, extreme fast charging, aims to make charging more convenient and closer to the experience of refueling conventional vehicles. The fourth, all-climate application, addresses the need for power battery performance in cold, hot and other demanding environments. The fifth, digital intelligence, uses data, algorithms and advanced management systems to improve the full lifecycle performance of power battery products.
Zhang also identified three industrial ecosystem leaps: application ecosystems, recycling ecosystems and collaborative ecosystems. The application ecosystem will expand the power battery from vehicles into a wider set of electrified scenarios. The recycling ecosystem will help close the loop for materials and reduce waste. The collaborative ecosystem will connect manufacturers, suppliers, research institutions, energy companies and end users. Together, these technology and ecosystem leaps are intended to support higher-quality and more sustainable development of the power battery industry.
6. Policy Support Aims to Strengthen Power Battery Competitiveness
Xiong Jijun, vice minister of the Ministry of Industry and Information Technology, said the global automotive industry transformation is still accelerating, and China’s power battery industry is in a critical period of improving quality and efficiency while expanding its advantages. The power battery sector has become a strategic link between the automotive industry, the energy sector and advanced manufacturing.
Xiong said the ministry will further strengthen technological innovation, reinforce standards leadership, regulate competition order, expand application scenarios and deepen opening-up and cooperation. These measures are intended to push China’s power battery industry toward higher-end, intelligent, green and international development. The policy direction reflects a recognition that the power battery industry needs both market vitality and orderly governance to maintain long-term competitiveness.
Standards leadership is particularly important for the power battery sector because safety, charging, recycling and interoperability depend on clear and consistent rules. Regulating competition order can help prevent destructive price wars and encourage investment in innovation. Expanding application scenarios can create new demand for the power battery beyond passenger vehicles. Deepening opening-up and cooperation can support global supply chain stability while allowing Chinese power battery companies to participate in international markets in a more orderly way.
7. Demand Expands Beyond Vehicles, Creating New Power Battery Applications
The conference also emphasized that demand for the power battery is expanding beyond new energy vehicles. Consumers continue to raise their expectations for range, fast charging, durability and all-round safety, while global competition is becoming more intense. To maintain core advantages, the power battery industry must rely on systemic innovation that covers materials, cells, systems, manufacturing and services.
At the same time, energy storage demand is expanding rapidly, and the application boundary of the power battery is extending outward. Low-altitude aircraft, embodied intelligent robots and other emerging scenarios are creating new requirements for power battery performance. These applications often demand high energy density, high safety, fast response and reliable operation under complex conditions, opening new space for power battery innovation.
Qu Guochun, director of the Equipment Industry Development Center of the Ministry of Industry and Information Technology, said one major future trend is the expansion of the market from new energy vehicles to all-domain electrification. He said energy storage battery shipments are expected to grow 60% year on year in 2026, and global lithium battery shipments are expected to move toward the 5 TWh era by 2030. The low-altitude economy, including eVTOL, and humanoid robots place high demands on battery performance and are expected to open a trillion-level incremental space. Penetration in electric ships and construction machinery is also continuing to rise.
| Outlook area | Projected indicator | Time frame |
|---|---|---|
| Energy storage battery shipments | Up 60% year on year | 2026 |
| Global lithium battery shipments | Toward the 5 TWh era | 2030 |
| Global lithium-ion battery market | More than 5,000 GWh | 2030 |
| China lithium-ion battery shipments | More than 3,600 GWh | 2030 |
These projections suggest that the power battery industry will not be limited to one dominant end market. Instead, the power battery will become a platform technology serving transportation, energy storage, aviation, robotics, shipping and construction machinery. This diversification can reduce dependence on a single market and create more opportunities for companies across the power battery value chain.
8. Technology Roadmap Shows Parallel Paths for Power Battery Development
Qu analyzed the future technology routes for the power battery industry. In the short term, liquid lithium batteries will remain the main product, with performance continuing to improve. Lithium iron phosphate batteries will focus on increasing energy density, optimizing low-temperature performance, extending cycle life and reducing costs. High-nickel ternary batteries will focus on safety upgrades, stability optimization and degradation control, while deepening their position in the mid-to-high-end long-range market.
In the medium term, multiple technology routes will advance in parallel and accelerate industrialization. The “liquid lithium battery plus sodium battery plus semi-solid battery” three-route pattern will continue to evolve. This parallel approach reflects the fact that different applications have different requirements for energy density, cost, safety, charging speed and temperature performance. No single power battery technology is expected to serve every use case in the near term.
Zhang said material system iteration is becoming the core driver for the layered upgrading of the power battery energy foundation. Liquid batteries cover the mainstream demand range of 200 to 300 Wh/kg. In the next three years, solid-liquid hybrid batteries are expected to enter a commercialization window. All-solid-state batteries will gradually break through performance limits, and large-scale application is expected by 2035. These milestones will shape investment, research and supply chain planning across the power battery industry.
9. Material Innovation and Solid-State Progress Shape the Power Battery Future
The power battery industry’s future will depend heavily on material innovation. Improvements in cathodes, anodes, electrolytes, separators and cell structures can raise energy density, improve safety and extend service life. At the same time, material choices affect cost, resource availability and recycling. The power battery sector must therefore balance performance gains with industrial scalability and environmental responsibility.
Solid-liquid hybrid batteries are expected to play an important transitional role. They can offer improved performance while building on existing manufacturing experience. All-solid-state batteries represent a longer-term direction because they may provide higher safety and energy density, but they still require progress in materials, interfaces, manufacturing and cost control. The power battery industry will need to manage a multi-route transition rather than a single abrupt shift.
Digital intelligence will also become more important in the power battery sector. Data-driven design, smart manufacturing, battery management and lifecycle monitoring can improve quality and safety. Digital systems can help track the health of power battery packs, optimize charging and support recycling. As the power battery industry expands into more applications, digital intelligence will become a key tool for managing complexity and ensuring reliable performance.
10. China’s Power Battery Industry Targets Doubling by 2030
Ouyang said China’s battery industry will continue to lead globally. In 2025, China’s lithium-ion battery shipments were about 1,875 GWh, accounting for more than 80% of the global total. International authoritative estimates suggest that the global lithium-ion battery market will exceed 5,000 GWh by 2030, and China’s lithium-ion battery shipments are expected to exceed 3,600 GWh by 2030, achieving a doubling of China’s lithium battery industry.
The outlook for the power battery industry is therefore closely tied to China’s ability to sustain innovation, improve quality and expand applications. The power battery sector must continue to raise safety standards, reduce costs, improve charging performance and strengthen recycling. It must also deepen international cooperation while managing the risks created by a more regionalized and localized global supply chain.
The 2026 World Power Battery Conference presented a clear narrative: the power battery industry has entered a new stage in which scale, technology and ecosystems must advance together. China’s power battery sector has a strong foundation, but the next phase will require more sophisticated coordination across materials, manufacturing, policy, standards and applications. As the power battery market expands from electric vehicles to all-domain electrification, the industry’s ability to innovate and collaborate will determine how quickly the next doubling of growth is achieved.