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The latest data released by the China Automotive Power Battery Industry Innovation Alliance show that from January to March, the total output of power and energy storage batteries in China was 487.4 gigawatt-hours, representing a year-on-year increase of 49.3%. Industry experts point out that the data indicates an overall upward trend in the health of the battery industry at present. In terms of the competitive landscape, leading companies maintain a relatively stable position, while mid-tier and lower-tier firms strive to find ways to differentiate themselves and stand out. Meanwhile, technological iteration has entered a critical phase of multiple breakthroughs. The industry’s growth drivers are becoming more diversified, and it is steadily advancing toward a new stage characterized by quality improvement and technology leadership. Energy storage batteries are the main driver of growth. According to sales data, in the first quarter of this year, both power and energy storage batteries continued to show strong year-on-year increases in production and sales. Driven by the deepening global energy transition and the targeted implementation of relevant policies, the installed capacity of new energy storage systems has been growing steadily, serving as the main driver for the overall growth of the battery industry. Data shows that from January to March this year, the cumulative sales volume of power and energy storage batteries in China reached 437.1 GWh, a year-on-year increase of 52.9%. Among them, the cumulative sales volume of power batteries was 291.9 gigawatt-hours, representing a year-on-year increase of 34.3% ； The cumulative sales volume of energy storage batteries reached 145.1 GWh, marking a significant year-on-year increase of 111.8%. Industry analysts point out that, based on the data, the sales growth rate of energy storage batteries in the first quarter was approximately three times that of power batteries, indicating a shift in the industry’s growth focus toward energy storage. It is understood that in the first quarter, the domestic power battery market experienced a correction, which is related to changes in the structure of the end-market. On the one hand, due to the Spring Festival holiday, the first quarter is usually a traditional off-season for the power battery industry ； On the other hand, starting from January 1, 2026, the policy regarding the purchase tax on new energy vehicles has been changed from complete exemption to a 50% reduction, which increases the cost of purchasing such vehicles and thus dampens consumers’ willingness to buy them to some extent. However, thanks to factors such as automakers striving to meet quarterly targets and the resulting surge in inventory replenishment needs at the end of Q1, the domestic power battery market regained some momentum in March. The installed capacity reached 56.5 GWh, a month-on-month increase of 114.9%. As technological advancements accelerate, the export of power and energy storage batteries also maintains a rapid growth rate. Data shows that from January to March, China’s total exports of power and energy storage batteries reached 84.1 GWh, a year-on-year increase of 36.7%. Among them, the cumulative exports of power batteries reached 56.8 GWh, a year-on-year increase of 50.3% ； The cumulative exports of energy storage batteries reached 27.3 GWh, a year-on-year increase of 15.0%. Along with the growth in production and sales, the technological iteration and upgrading within the industry are also accelerating. In terms of material types, lithium-ion batteries are currently the mainstream choice in the fields of power and energy storage. Among them, lithium iron phosphate batteries hold a dominant position due to their cost and safety advantages. According to the estimated data on the demand for key materials used in power and energy storage batteries released by the China Automotive Power Battery Industry Innovation Alliance, from January to March, China consumed 179,000 tons of ternary materials and 994,000 tons of lithium iron phosphate materials for power and energy storage batteries ； A total of 81,000 tons of electrolyte was used for ternary batteries, while 596,000 tons was used for lithium iron phosphate batteries. Furthermore, from a technological trends perspective, in addition to lithium batteries, emerging technologies such as solid-state batteries and sodium-ion batteries are also gaining prominence, with the potential to reshape the industry landscape. Taking solid-state batteries as an example, their performance is suitable for applications in new energy vehicles, high-end energy storage, and low-altitude eVTOLs. Since the beginning of this year, numerous companies, including Guoxuan High-Tech and Sunwoda, have disclosed progress in the research, development, and mass production of related products, with the industrialization process accelerating continuously. Industry experts say that companies in the battery industry chain are continuously exploring new technological approaches and expanding the application scenarios for their products. In terms of the competitive landscape, leading companies in the industry maintain their dominant position thanks to advantages in technology and production capacity. Meanwhile, second- and third-tier enterprises are actively seeking differentiated competitive strategies to gain an edge amid technological changes. With the combined efforts of various parties to improve the industrial ecosystem, behind the surface of prosperity, the power and energy storage battery industries are also going through a period of challenges. Irational competition, manifested in product homogenization and disorderly price wars, has emerged; some companies, in an effort to secure orders, sell battery cells or products at prices below their cost, resulting in minimal profits for leading companies and losses for those in the second tier – a situation that poses potential risks to product quality. On April 9, relevant departments including the Ministry of Industry and Information Technology, the National Development and Reform Commission, the State Administration for Market Regulation, and the National Energy Administration jointly held a symposium for enterprises in the power and energy storage battery industry to address measures aimed at regulating competition within this sector. This is the second symposium on combating over-competition held by the relevant authorities this year, indicating that efforts to regulate the competitive landscape in the power storage battery industry are advancing further. Zhang Hong, a member of the expert committee of the China Automobile Distribution Association, suggests that battery companies should focus on specific niche areas or emerging technology fields, and use technological breakthroughs to develop unique product or service advantages in order to avoid homogeneous competition. They also actively join self-regulatory organizations such as industry associations and chambers of commerce, participate in the development of industry standards and regulations, and work together to resist unfair practices such as price-based competition and aggressive competition.