China's EV Battery Output Rises 25% YoY in January, While Vehicle Installations Decline

On February 22, Cui Dongshu, Secretary-General of the Passenger Car Association (CPCA), stated that China’s combined output of power and other batteries reached 168 GWh in January 2026, up 25% year-over-year. However, this growth rate marked a notable slowdown compared to the previous pace exceeding 40%, indicating a gradual improvement in supply-demand dynamics. Domestic installations of new energy vehicles (NEVs) totaled approximately 700,000 units that month, down 12% year-over-year. This included 398,000 battery electric passenger vehicles (BEVs), a 17% decline, and 269,000 plug-in hybrid electric passenger vehicles (PHEVs), down 6%. The share of power batteries installed in vehicles dropped to 25%, the lowest level so far this year. Among these, ternary batteries accounted for 30% of installations, while lithium iron phosphate (LFP) batteries represented 24%. Notably, vehicles with high energy density (≥160 Wh/kg) rose to 13% of the market, while low-end products (<125 Wh/kg) have been completely phased out. CATL and BYD together captured a combined market share of 67%, while companies like Gotion High-Tech and EVE Energy delivered strong performances. With BYD fully transitioning to LFP batteries, the ternary battery market is now dominated by CATL and SVOLT. Meanwhile, robust demand for premium PHEVs is driving a recovery in the ternary battery segment.