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Chinese Lithium Battery Demand Set to Plummet by 2026

12/28/2025

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Summary

Story summary

Demand for Chinese lithium batteries will decline in 2026 as EV sales drop 30% and tax incentives phase out, hitting Contemporary Amperex Technology Ltd (CATL) and EVE Energy.
EU shipments rose 4% in 2025, while U.S. shipments fell 9.5%, signaling limited benefit for Chinese suppliers.
Around 50 Chinese EV makers may exit the market due to weakening demand and overcapacity.
Beijing is expected to decide on trade-in subsidies in January.

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Story summary

Demand for Chinese lithium batteries will decline in 2026 as EV sales drop 30% and tax incentives phase out, hitting Contemporary Amperex Technology Ltd (CATL) and EVE Energy.
EU shipments rose 4% in 2025, while U.S. shipments fell 9.5%, signaling limited benefit for Chinese suppliers.
Around 50 Chinese EV makers may exit the market due to weakening demand and overcapacity.
Beijing is expected to decide on trade-in subsidies in January.