Lithium battery boom reignited: clearing out excess and internal competition, supply and demand finally reverse

SnapshotLaborer · 2026-03-30T01:44:00+00:00

After three years of capacity clearance and demand structure adjustment, the lithium battery industry is standing at the beginning of a new cycle of prosperity. On the power battery side, the electrification of commercial vehicles and the increase in single-vehicle capacity open up structural incremental space; on the energy storage side, the continuation of domestic capacity pricing policies and the explosive demand for AIDC data centers have led to unexpected growth. On the supply side, capital expenditure across all segments has entered a downward trend, with the operating rates of key materials such as separators and lithium hexafluorophosphate rising above 80%, and the supply-demand relationship has substantially reversed.

SnapshotLaborer

2026-03-30 01:44:00

After three years of capacity digestion and demand-structure adjustment, the lithium battery industry is at the starting point of a new round of the cycle of improved business conditions. On the propulsion battery side, the electrification of commercial vehicles and the increase in charge capacity per vehicle open up room for structural incremental growth; on the energy storage side, the continued domestic capacity electricity pricing policy and the explosive demand from AIDC data centers create growth that is beyond expectations. On the supply side, capital expenditures across all segments have entered a downward trend; operating rates for key materials such as separators and lithium hexafluorophosphate have already risen to more than 80%, and the supply-demand relationship has effectively reversed.

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