Bank of China International: China's Full-Year Lithium Battery Demand Outlook Positive, Key Focus on CATL

SadMoneyMeow · 2026-03-18T04:52:42+00:00

Bank of Communications International research report indicates that in February, China's power battery vehicle installation volume declined to 26.3GWh due to the seasonal off-peak period, but exports remained strong at 23.9GWh. With policy support and the release of new models, short-term demand will be sustained, and Chinese companies will continue to expand in the global market. It is recommended to pay attention to leading enterprises such as CATL.

SadMoneyMeow

2026-03-18 04:52:42

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Bank of Communications International releases research report stating that, under the influence of the off-season in the automotive market in February, China’s installed capacity of power batteries declined, but exports remained strong. In February, China’s mainland power battery installations totaled 26.3 GWh, up 24.6% year-on-year but down 37.4% month-on-month. In the same month, China exported 23.9 GWh of batteries, up 13.2% year-on-year and down 0.9% month-on-month, with total exports accounting for 20.6% of that month’s sales.

The report indicates that on the demand side, as subsidies for “old for new” vehicle upgrades are fully implemented across regions after the holiday, and with the release of new models from April to May, coupled with the phased “export rush” caused by adjustments in export tax rebate policies, short-term demand is strongly supported. Meanwhile, Middle Eastern geopolitical conflicts are expected to further boost overseas energy storage demand, and Chinese manufacturers are expanding their global market share by leveraging the cost advantages of lithium iron phosphate (LFP) batteries.

The bank maintains a positive outlook for China’s lithium battery demand throughout the year. Regarding stocks, it recommends focusing on leading companies with cost advantages, technological barriers, and strong overseas presence, such as CATL (03750).

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