China's power battery industry showed "quantity and quality rising together" in H1 2026: exports reached 122.7GWh (+50.3%), June installations hit records with NEV penetration breaking 63.6%, and stricter safety standards took effect in July.
Export Surge: Overseas Becomes Second Growth Curve
H1 2026 power battery exports reached 122.7GWh (+50.3% YoY), far exceeding domestic installation growth of 12%. Energy storage battery exports hit 58.6GWh (+28.5%).
LFP batteries dominate the global track, with cost-effectiveness advantages continuing overseas. CATL leads with 154.25GWh installations and 46.04% market share, but second-tier players are growing faster.
Record Installations, Penetration Breaks 60%
June NEV penetration reached 63.6%, a new monthly record. Battery production and installations grew over 30% YoY.
CATL and BYD maintain top two positions with combined share over 60%, but CALB and EVE are accelerating market share gains, signaling a loosening duopoly.
Safety Standards Upgrade
The strictest safety standards took effect in July, mandating "no fire, no explosion" as baseline requirements. This will accelerate industry consolidation:
- Higher technical barriers for thermal runaway management
- Increased costs for additional safety designs
- Market share redistribution favoring stronger players
Industry Warning: Quality Matters
CALB's battery quality issues remind the industry that quality control cannot be sacrificed for scale. GAC Aion extended warranties to 300,000 km to address battery concerns.
