Core Insights - The Chinese power battery industry has made significant progress, expanding in scale while undergoing deep market adjustments, with a focus on technological innovation and global operations as it moves towards a new development stage by 2026 [1] Market Growth - The domestic power battery installation volume reached 93.5 GWh in November 2025, with a month-on-month increase of 11.2% and a year-on-year increase of 39.2%. Cumulatively, the installation volume for the first 11 months of 2025 was 671.5 GWh, reflecting a year-on-year growth of 42.0% [2] - Lithium iron phosphate (LFP) batteries continue to dominate the market, accounting for 80.5% of the total installation volume in November 2025, with a year-on-year growth of 40.7% [2] - The demand for materials in the battery sector is also increasing, with LFP materials reaching 290.2 thousand tons in the first 11 months of 2025, compared to 193.4 thousand tons in 2024 [2] Technology and Market Trends - LFP batteries are rapidly capturing market share due to cost advantages and technological breakthroughs, while the growth of ternary batteries is slowing down [3] - The global shipment of LFP cathode materials is expected to reach 5.25 million tons by 2026, representing a year-on-year increase of 36% [3] Export and Application Expansion - The export volume of domestic power batteries was 21.2 GWh in November 2025, with a year-on-year increase of 70.2%. Cumulatively, the export volume for the first 11 months of 2025 was 169.8 GWh, reflecting a year-on-year growth of 40.6% [4] - The energy storage sector is becoming a significant growth driver for many established power battery companies, with companies like Yiwei Lithium Energy and CATL reporting substantial increases in both power and energy storage battery shipments [4] Future Market Outlook - The domestic energy storage market is expected to expand significantly, with new bidding for energy storage projects reaching 255.8 GWh in the first nine months of 2025, a year-on-year increase of 97.7% [5] - The overall supply-demand structure of the lithium battery industry is anticipated to improve further by 2026, driven by increased electric vehicle penetration and enhanced economic viability of energy storage installations [8] - The cumulative production of power and other batteries in China reached 1,468.8 GWh in the first 11 months of 2025, with a year-on-year growth of 51.1% [8]