EV Battery Installations Drop 19.2% YoY in February as Market Enters Structural Adjustment Phase

According to the latest report from the China Passenger Car Association (CPCA), China's installed capacity of power batteries for new energy vehicles (NEVs) in February 2026 reached 27.3 GWh, down 19.2% year-over-year. Although cumulative installed capacity for January–February rose by 37.4% year-over-year, the overall market faced short-term pressure due to policy adjustments and consumer sentiment. NEV production during the same period totaled 1.604 million units, a 13.7% year-over-year decline, with a market penetration rate of 39.9%. The average battery capacity per vehicle increased to 62.0 kWh, up 29.2% year-over-year. Lithium iron phosphate (LFP) batteries remained dominant, with prismatic cells accounting for as high as 97.8% of battery pack installations. CATL maintained its leading position with a market share of 52.7%, while companies like SVOLT and LG Energy Solution achieved growth through partnerships with brands such as XPeng and Tesla. In the solid-state battery segment, the industry is accelerating the transition from semi-solid-state to all-solid-state batteries, though it continues to face challenges related to cost and technological bottlenecks.