The lithium battery and new energy industry stayed buoyant this week: production schedules hit new highs, half-year results came in strongly, solid-state battery industrialization accelerated and the new consumption tax entered its countdown, multiple signals marking a key moment for the supply chain.
1. Industry data: August schedules beat expectations, storage becomes the top growth engine
China's total battery production schedule for August was about 304 GWh, up 7.4% month on month and above the 3-5% expected at the start of the month. Storage cells accounted for 125 GWh, a net increase of about 10 GWh, as stocking for large overseas storage projects made storage the top growth engine. Combined sales of power and storage batteries in July were 185.2 GWh, up 45.5% year on year.
From January to July, China's cumulative power battery sales reached 790.4 GWh, up 37.1%, with exports of 146.7 GWh, up 52.1%. Chinese companies continue to strengthen their dominance: global power battery installations in the first half of 2026 were 608.5 GWh, up 20%, and seven Chinese companies held a combined 72.4% share, a record for the period.
2. Policy: countdown to the lithium battery consumption tax, with differentiated rates to guide upgrading
Only a little over ten days remain before the new consumption tax on lithium-ion batteries takes effect on 1 September. The Ministry of Finance and two other departments confirmed a 2% consumption tax on lithium-ion batteries from 1 September 2026, rising to 4% from 1 September 2027, while sodium-ion, solid-state and fuel cells remain exempt until the end of 2028, ending more than a decade of exemption for lithium-ion batteries since 2015.
The key feature is a phased, differentiated approach, a one-year buffer at a halved 2% rate and a continued exemption window for next-generation technologies. Analysts note that leading companies can pass costs downstream, while those with weak pricing power will feel more pressure, accelerating consolidation toward leaders. At current mainstream prices, the 2% tax adds about RMB 444-480 to the battery cost of an EV with a 60 kWh pack.
3. Company news: strong half-year results and faster capacity building
Several battery leaders reported strong half-year results this week:
· EVE Energy: revenue of RMB 45.691 billion, up 62.20%; net profit attributable to shareholders of RMB 3.301 billion, up 105.66%. Power battery shipments of 35.76 GWh and storage battery shipments of 44.46 GWh both grew more than 50%, and its 46-series large cylindrical cells are now in volume supply for BMW's Neue Klasse models.
· Tinci Materials: revenue of RMB 14.71 billion, up 109.28%; net profit of RMB 2.861 billion, up 967.91%, with storage battery electrolyte sales more than doubling.
· Capchem: revenue of RMB 7.463 billion, up 75.66%; net profit of RMB 984 million, up 103.33%.
· CALB expects half-year net profit of about RMB 1.506-1.581 billion, up about 100-110%, with global power battery installations of 31.2 GWh in the first half, fourth in the world and up 39.5%.
On capacity, Tesla's Shanghai Gigafactory produced its 6 millionth battery pack; LG Energy Solution's plant in Lansing, Michigan, started production with annual capacity of more than 35 GWh; and the substation for phase one of Guoke Energy's 30 GWh battery base in Lanzhou New Area was energized.
In strategic cooperation, CATL signed a five-year agreement with Dongfeng Liuzhou Motor focused on technology development and standards for all scenarios, and Hunan Yuneng filed for a Hong Kong listing to complete an A+H dual listing.
Another notable item this week was the final bankruptcy liquidation of Evergrande Auto. On 20 August the Guangzhou Intermediate People's Court accepted the liquidation application of Evergrande New Energy Vehicle Investment Holding Group, ending the property giant's costly venture into carmaking. Xu Jiayin has been sentenced by the Shenzhen Intermediate People's Court on charges including misappropriation of funds. Evergrande Auto lost more than RMB 100 billion without ever achieving volume deliveries, a cautionary tale of capital games.
4. Technology frontier: solid-state industrialization accelerates
Solid-state batteries reached several milestones this week:
On international standards, a China-led proposal, "Secondary lithium-ion cells for the propulsion of electric road vehicles, Solid-state batteries: application guide, test items and conditions", was approved as an IEC project, the first international standard in the solid-state field.
On major projects, an advanced prismatic all-solid-state battery industrialization project was signed in Suzhou Industrial Park, led by the Institute of Physics of the Chinese Academy of Sciences with Zhongke Low Carbon, with a first phase of a 0.2 GWh cell pilot line and a 4 GWh pack line, targeting 400-600 Wh/kg and volume production within two years. The Dalian Institute of Chemical Physics announced a RMB 55 million pilot platform for high-performance solid-state battery core materials with planned output of 65 tonnes a year.
On timing, 2026 is the first year of all-solid-state validation: GAC has started vehicle validation of semi-solid batteries, and CATL and BYD plan small-batch all-solid-state production and demonstration vehicles in 2027. Sulfide electrolyte costs have fallen more than 35%, moving solid-state batteries from technically feasible toward economically feasible. A CSC Securities report says the sector is in a window of triple resonance: strong production schedules, solid-state vehicle validation and equipment orders turning into revenue.
5. Market: lithium carbonate back above RMB 150,000
The main lithium carbonate futures contract rose above RMB 155,000 per tonne this week, up clearly from the end-July low of RMB 143,000. Spot battery-grade lithium carbonate is quoted at about RMB 151,000 per tonne. Stabilizing lithium prices lifted lithium mining and battery materials stocks, and the CSI New Energy Vehicle Index rose strongly.
Summary: record August production schedules, strong half-year results, accelerating solid-state industrialization and the countdown to the consumption tax, high activity and policy change are moving together, and the battery supply chain is at a key point in a new cycle. Storage has overtaken power batteries as the top growth engine, solid-state batteries are moving faster from lab to production, and the new tax will reshape competition. With the traditional September-October peak season approaching, the supply chain is worth watching closely. The collapse of Evergrande Auto stands in sharp contrast to INFOR's steady focus, showing again that on the long road of new energy, only solid technical accumulation and prudent management can carry a company through the cycle.
