Cui Dongshu, Secretary-General of China Passenger Car Association (CPCA), released lithium battery industry data for Jan-Apr 2026 recently. Statistics show China’s lithium battery sector boasts surging total demand and dramatic structural shift, with overall demand hitting 671.2 GWh, up 51% year-on-year. The industry no longer relies solely on new energy vehicles (NEVs) for growth; energy storage and overseas exports become dual core growth drivers.

NEVs still form the fundamental consumption base of lithium batteries yet with slower growth. From January to April 2026, lithium battery demand for NEVs reached 494.3 GWh, rising 41% YoY, far below the expansion pace of energy storage. Energy storage turns into the biggest incremental contributor: cumulative demand stands at 176.9 GWh with a 90% YoY surge, and April’s single-month growth rockets to 196%. Structure proportion changes prove the industrial transition: NEV-related battery share drops from 83% in 2025 to 74%, while storage’s proportion jumps from 17% to 26%.

Robust export performance strongly backs industrial prosperity and offsets weak domestic passenger car sales. Battery demand for exported NEV passenger cars surges 111% YoY, hitting 102% in April alone; China’s total lithium battery export climbs 65% year-on-year per customs data, highlighting rising global recognition of Chinese lithium products. Domestic market splits sharply: commercial vehicle battery demand rises 50% YoY, while passenger car retail battery demand slips 2%, marking stock-based competition in domestic passenger car segment.

Global energy transition, booming renewable power installation and rising power demand from AI data centers jointly fuel explosive growth of energy storage batteries. Meanwhile saturated domestic passenger car market and fading purchase subsidies drag down domestic NEV battery loading growth.

In short, booming storage and overseas exports offset sluggish domestic passenger car demand and sustain lithium battery’s 51% yearly growth. Lithium firms now prioritize energy storage deployment and global export instead of focusing merely on domestic NEV installation, forming a diversified industrial layout.