2026 World Power Battery Conference Held in Yibin; Changan Auto Reveals H1 Profit Margin Gap Between Cell and Vehicle Makers

The 2026 World New Energy Vehicle Battery Conference, themed “Powering Everything with Electricity · Integrated Coexistence,” was held in Yibin, Sichuan, from September 3 to 4. At the conference, Deng Chenghao, Vice President of Changan Automobile, stated that in the first half of 2026, the average profit margin for cell manufacturers stood at 12.9%, while that for automakers averaged 3.7%. Chery Automobile also addressed its low-profit situation during the event. CATL reported a net profit margin of 10.18% in 2022, 18.12% in 2025, and 16.98% in its interim report for 2026. Regarding all-solid-state battery technology, Miao Lixiao, General Manager of Changan Automobile’s Advanced Battery Research Institute, noted that material systems face challenges once all-solid-state batteries enter mass production. Currently common sulfide-based solid electrolytes carry risks, and materials such as ternary cathodes and silicon-carbon anodes undergo expansion and contraction during charge-discharge cycles, requiring significant external pressure in some experimental setups to maintain contact between components. Yuan Wenjing, Deputy Director-General of Beijing Automotive Group’s Research Institute, remarked that solid electrolytes remain an immature component, suggesting that hybrid solid-liquid batteries may become the first commercially viable technical pathway. On lithium iron phosphate (LFP) technology, Sun Huajun, Chief Technology Officer of BYD, highlighted that LFP materials are stable, with abundant domestic reserves and strong supply foundations for iron and phosphorus, whereas cobalt and nickel resources remain highly dependent on imports. He Wei, Vice President of EVE Energy, stated that with the advancement of integrated vehicle manufacturing technologies, LFP batteries could potentially achieve a range of 1,000 kilometers in the future; however, at the 100 kWh pack level, LFP batteries weigh nearly 300 kg more than ternary batteries. Academician Ouyang Minggao of the Chinese Academy of Sciences emphasized that over the next decade, the LFP technology pathway will continue to dominate both power and energy storage battery markets. Tian Qingjun, Senior Vice President of Envision Group, projected that annual new installations of novel energy storage capacity will exceed 30 GWh per year over the next five years. Wu Kai, Chief Scientist of CATL, indicated that batteries for embodied intelligent robots currently lack comprehensive safety standards and estimated that by 2040, the global eVTOL fleet size could rival that of today's commercial airliner fleets.