Summary of the Key Points
The just-concluded 2026 World Power Battery Conference in Yibin, Sichuan, can be seen as the latest “health check report and future roadmap” for the global power battery industry. China has undoubtedly become the global leader in this field, accounting for over 80% of global shipments. However, the era of “scale-up 1.0,” which relied on aggressive capacity expansion and low-price competition, has come to an end. The industry is now transitioning to a “quality 2.0” phase, where competition will focus on technology, expanding application scenarios, and generating higher added value. In the future, batteries will not only be used in electric vehicles but also in new areas such as energy storage, electric aircraft, and humanoid robots, creating tremendous growth potential. By 2030, the global demand for batteries is expected to surge to 5 TWh, with China still holding a significant share. To maintain its leading position, China must address core technological shortcomings, establish a comprehensive recycling system, and overcome barriers in the overseas supply chain.
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Detailed and Easy-to-Understand Explanation
1. How significant is China’s global leadership in power batteries?
Many people are aware that Chinese batteries are popular, but they may not realize just how dominant they are:
- 8 out of every 10 lithium-ion batteries sold globally are produced in China.
- In 2025, six of the top ten companies in the global power battery market were Chinese, accounting for 70% of the market share.
- It was China that transformed the basic principles of lithium-ion batteries from being used in small devices (such as phones and headphones) into large batteries suitable for vehicles and energy storage systems, turning this niche technology into a core component of the massive new energy industry.
- Practical examples illustrate this progress: Electric vehicles used to have a range of only 100 kilometers; now, a typical car can travel 500-600 kilometers, and high-end models can reach 1,000 kilometers. Charging times have also been significantly reduced, with battery costs plummeting from thousands of yuan to 300-500 yuan per kilowatt-hour, making electric vehicles cheaper than their fuel-powered counterparts.
2. The era of aggressive capacity expansion is over
The previous “scale-up 1.0” phase was about who could build factories and produce the most quickly to make profits. Over the past decade, hundreds of Chinese battery manufacturers expanded production rapidly, driving the global penetration of electric vehicles from a small percentage to nearly one-third. However, this approach no longer works:
- Battery specifications have become standardized, and many manufacturers face fierce price competition, with some earning less than the cost of a bottle of mineral water per battery.
- Overseas countries are promoting local production of battery components, raising the barriers for Chinese companies to enter these markets.
- China still lacks advanced core materials and technologies, making it difficult to maintain its competitive edge solely through scale.
3. Power batteries are not limited to electric vehicles; new markets offer huge potential
The market for power batteries is far broader than just electric vehicles. The conference highlighted the potential of energy storage, electric aircraft, humanoid robots, and other applications. For example, the demand for batteries in these areas could exceed that of electric vehicles. By 2030, the global demand for lithium-ion batteries is expected to reach 5 TWh, more than 2.7 times the current annual volume, representing a huge growth opportunity.
4. A clear roadmap for battery technology development
The conference provided a clear timeline for future battery technologies:
- Short term (2-3 years): Liquid lithium-ion batteries will remain the mainstream, with improvements in lithium iron phosphate technology, making them cheaper, more durable in cold weather, and more cost-effective. High-nickel ternary batteries will enhance safety for high-end vehicles.
- Medium term (5 years): Sodium batteries, which are cheaper than lithium-ion batteries, will replace lower-end applications and be used in energy storage. Semi-solid batteries will be commercialized in mid-to-high-end vehicles, extending ranges to over 1,000 kilometers.
- Long term (over 10 years): All-solid batteries will become more widely used, with energy densities twice that of current lithium-ion batteries, enabling ranges of over 1,500 kilometers in vehicles and meeting the needs of electric aircraft.
5. Leading position comes with challenges
Although China is the global leader, it still faces challenges:
- Increasing overseas supply chain barriers, requiring Chinese companies to establish local production facilities.
- Lack of advanced original technologies and core materials.
- Inefficient recycling systems for retired batteries, leading to environmental pollution and waste of scarce metals.
- The Ministry of Industry and Information Technology is working to regulate competition and support research and development in new applications, helping the Chinese battery industry maintain its leading position.