Cui Dongshu: This year, the growth rate of batteries has decreased from over 40% to 22%, and the supply and demand of batteries are gradually improving.

The sub-association of the China Association of Automobile Manufacturers, Cui Dongshu, stated in an article that in February, the total production of power and other batteries in China was 142GWh, an increase of 19% year-on-year; in January and February, the total production of power and other batteries in China was 310GWh, an increase of 22% year-on-year. This year, the growth rate of batteries has dropped from over 40% to 22%, and the supply and demand of batteries is gradually improving. By 2025, the proportion of battery production in vehicles will remain at 44%, but by February 2026, this proportion will drop to 19%, with a 21% share of ternary batteries and an 18% share of lithium iron phosphate batteries. The installation rate of power batteries has reached a historical low. In February 2026, the domestic market for new energy vehicles saw 370,000 units sold, a 47% decrease year-on-year, including 236,000 units of pure electric passenger cars (down 41%), 100,000 units of plug-in hybrid passenger cars (down 61%), and 27,000 units of pure electric trucks. The production data shows a significant differentiation. In the first quarter of 2026, the proportion of vehicle models with an energy density of over 160 reached 15%, a significant increase compared to 9% in the same period of 2025. This is mainly due to the recovery of demand for ternary high-end products. In contrast, the proportion of products with an energy density of less than 125 has dropped to 0% in 2026. The competition pattern of battery companies is dominated by Ningde Times and BYD. By 2026, Ningde and BYD still maintain a 68% market share, leaving over 30% of the market for other companies. This year, Guoxuan High-Tech, Honeycomb Energy, Geely Yaoning, and Chuneng New Energy have shown strong performance. Due to BYD's comprehensive transformation to lithium iron phosphate batteries, the advantages of Ningde Times, Honeycomb Energy, and other ternary batteries have become more prominent, driving the strength of ternary batteries in the high-end plug-in hybrid market.