Global EV Battery Market Sees Structural Shift in Q1 2026

According to the latest data released by market research firm SNE Research, global battery usage for electric vehicles (EV, PHEV, and HEV) reached approximately 244.6GWh during January–March 2026, representing a year-on-year increase of 9.1%.

The latest industry data highlights the continued expansion of Chinese battery manufacturers in the global market, while Korean battery makers face increasing pressure from slowing EV demand in North America and Europe.

Chinese Battery Makers Dominate Global Rankings

Among the global top 10 battery manufacturers by installed capacity in Q1 2026, seven Chinese companies secured positions on the list:

• CATL
• BYD
• CALB
• Gotion High-Tech
• EVE Energy
• SVOLT Energy
• Sunwoda

Together, these seven Chinese battery manufacturers accounted for 71.4% of the global market share.

Meanwhile, the combined market share of the three major Korean battery companies — LG Energy Solution, SK On, and Samsung SDI — fell to 15.6%, down 2.1% compared with the same period last year. Samsung SDI dropped out of the global top 10 rankings entirely.

Panasonic remained the only Japanese company in the top rankings, with a market share of 3.7%.

CATL Continues to Strengthen Global Leadership

CATL maintained its position as the world’s largest battery manufacturer with installed capacity reaching 99.5GWh in Q1 2026, up 15.2% year-on-year.

The company benefited from strong demand from major Chinese EV brands including:

• AITO
• Li Auto
• NIO
• Zeekr

In particular, the rapid sales growth of AITO vehicles significantly boosted battery demand.

At the same time, CATL continued expanding its customer base globally through increased supply partnerships with Toyota, Kia, Skoda, and other international automakers, further reducing dependence on the domestic Chinese market.

BYD Faces Short-Term Pressure Despite Strong Position

BYD remained the world’s second-largest battery supplier with 33.5GWh of battery installations during Q1 2026, although this represented an 8.0% decline year-on-year.

Industry analysis suggests the decline was mainly driven by softer sales of BYD-branded vehicles in the Chinese domestic market.

However, battery demand from customers and emerging brands such as:

• Xiaomi EV
• Fangchengbao
• XCMG
• Mahindra

showed notable growth.

Despite ongoing efforts to diversify its customer base, BYD’s battery business remains closely tied to fluctuations in its own EV sales performance.

Other Chinese Manufacturers Continue Rapid Growth

Several Chinese battery companies achieved strong year-on-year growth:

• CALB: 11.6GWh (+31.7%)
• Gotion High-Tech: 10.2GWh (+26.3%)
• EVE Energy: 7.5GWh (+17.5%)
• SVOLT Energy: 6.5GWh (+33.6%)
• Sunwoda: 5.5GWh (+24.5%)

The continued rise of these manufacturers reflects the increasing competitiveness and diversification of China’s battery supply chain.

Korean Battery Makers Face Growing Challenges

LG Energy Solution retained third place globally with 23.7GWh installed capacity, up 6.6% year-on-year.

SK On ranked seventh with 9.0GWh, down 10.4%, while Samsung SDI declined 27.7% to 5.3GWh and fell outside the top 10 rankings.

The slowdown in EV sales across North America and Europe significantly impacted Korean battery suppliers.

Key factors included:

• Weakening demand for EVs in the U.S. market
• Slower sales from major automotive customers
• Reduced battery demand from Ford, Volkswagen, Mercedes-Benz, and other OEMs

Ford’s temporary suspension of the F-150 Lightning production was identified as a major factor affecting SK On’s battery demand.

Meanwhile, Samsung SDI experienced declining demand from customers including BMW, Audi, Jeep, and Rivian.

Panasonic Focuses on Next-Generation Technologies

Panasonic recorded 9.1GWh of battery usage during Q1 2026, up 4.0% year-on-year.

The company continued benefiting from Tesla Model Y demand growth, although weaker Model 3 sales and the gradual reduction of Model S and Model X production created uncertainty for future battery demand.

To reduce reliance on Tesla, Panasonic is accelerating development of next-generation:

• 4680 battery cells
• 2170 battery technologies
• North American manufacturing expansion

Industry Enters Structural Transformation Phase

Industry analysts believe the global EV battery market is entering a structural transformation stage rather than simply maintaining high-speed growth.

While China and North America show signs of slowing momentum, growth is increasingly driven by:

• Europe
• Southeast Asia
• Emerging international markets

At the same time, competition is evolving beyond pure production scale.

Future industry competitiveness will increasingly depend on:

• Customer diversification
• Global supply chain expansion
• Technology innovation
• Entry into non-EV sectors

Many battery manufacturers are now accelerating expansion into:

• Energy storage systems (ESS)
• Data center backup power
• Industrial energy infrastructure
• Commercial battery applications

Overall, Q1 2026 demonstrated both the expanding dominance of Chinese battery manufacturers and the growing profitability pressure faced by Korean battery companies in an increasingly competitive global market.

Electric Car Lithium Batteries manufacturer from China