Western 2026 Lithium Battery Strategy: Inflection point of supply and demand has emerged, dancing together offshore and solid-state.

Western released a research report stating that the economic viability of independent energy storage in China is evident, demand exceeds expectations, and there is strong demand for large storage in Europe, the US, and emerging markets. It is expected that the demand for energy storage batteries will continue to grow rapidly by 2026. Looking at the supply-demand balance, the supply-demand structure of key components such as lithium iron phosphate is expected to significantly improve by 2026. In the trend of industry capacity concentration and high-end production, the capacity of leading manufacturers is becoming more scarce, with small and medium-sized capacities gradually exiting the market. With the expectation of price increases, profits of top companies in the industry are expected to improve. Overseas demand for power batteries is reaching a turning point in growth, and demand for energy storage batteries remains high. In addition, the three core issues of industrializing solid-state batteries are expected to continue to break through. The main points of Western's research are as follows: - By 2026, the supply-demand pattern of lithium batteries is expected to be completely reversed. - On the demand side, the global demand for power batteries is expected to maintain stable growth by 2026, driven by the increasing adoption of electric vehicles in China and the recovery of new energy in Europe. - On the supply side, with the improvement in lithium carbonate prices and material supply-demand, profitability is expected to gradually improve by 2026. - Recommendations for specific companies in the industry are mentioned, such as Shijiazhuang Shangtai Technology, Guangzhou Tinci Materials Technology, and others. In conclusion, the report highlights the positive outlook for the lithium battery industry, with increasing overseas demand, continuous breakthroughs in solid-state battery industrialization, and growth opportunities in emerging markets and new energy vehicles.