China Builds Complete Power Battery Industry, Targets All-Solid-State Breakthrough

Record Growth in Power Battery Sales

China's power battery industry maintained strong momentum in the first seven months of 2026, with cumulative sales reaching 790.4 gigawatt-hours (GWh), representing a 37.1% increase compared to the same period last year, according to latest industry data.

This continues a broader upward trajectory — in 2025, domestic power battery installations totaled 769.7 GWh, up 40.4% year-on-year. The full-year production of both power and energy-storage batteries combined reached 1,755.6 GWh, growing 60.1% annually.

Technology Advances Across the Board

The country has made significant strides in battery innovation. Energy density for both lithium iron phosphate (LFP) and ternary batteries continues to climb, while high-rate fast-charging cells are entering widespread application. Sodium-ion batteries and hybrid solid-liquid batteries have now achieved industrial-scale production.

China's power battery industry chain now covers the full spectrum — from basic raw materials and cell manufacturing to system integration, equipment supply, and recycling — having established more than 10,000 recycling collection points nationwide.

Beyond the Road

The sector is expanding its footprint well beyond electric vehicles. Power batteries are finding new applications in shipping, aviation, and intelligent robotics, diversifying demand across transportation and industrial sectors.

Looking ahead, 2026's full-year domestic power battery installation demand is projected at 888.7 GWh, up 15.8% year-on-year. Within that figure, new-energy passenger vehicles account for 672.7 GWh (up 10.8%), while new-energy commercial vehicles drive 216.1 GWh (up 34.7%).

Solid-State on the Horizon

The next major push centers on all-solid-state batteries — widely regarded as the holy grail of energy storage technology due to their superior safety, higher energy density, and faster charging potential compared to current liquid-electrolyte cells.

Alongside this, policymakers are encouraging broader deployment across energy storage, transportation, and embodied intelligence (humanoid robotics) applications, positioning the battery industry as a cornerstone of China's clean-energy and advanced-manufacturing strategies.