CATL’s energy storage division generated 19.23 percent of the company’s total revenue in the first half of 2026, according to data published by Energy-Storage.news, marking a structural shift as stationary storage becomes a critical growth engine alongside the maturing EV battery business. The figure is up from roughly 15 percent in H1 2025 and comes as combined Chinese traction and energy storage battery production reached 1,068.9 GWh, a 53.3 percent year-on-year increase, per the China Automotive Battery Innovation Alliance.
CATL reported a 42 percent jump in net profit for H1 2026, with Reuters identifying the energy storage business as a major driver of stronger-than-expected Q2 results. ESS revenue surged 88 percent year-on-year, fueled by large-scale orders in Europe, the Middle East, and Southeast Asia.
China’s battery production keeps expanding
August production schedules for China’s five largest battery makers were estimated at 193 GWh, an 8 percent increase over July and a 67 percent jump from August 2025. Energy storage cell production alone was projected at approximately 125 GWh, accounting for roughly 41 percent of total planned output. LFP chemistry continues to lead monthly expansion, consistent with its dominance in both mass-market EVs and stationary storage, where cost and cycle life outweigh energy density.
The 314 Ah large-format cell has driven much of the ESS production increase. Larger formats reduce the number of cells and connections within a container, simplifying assembly and lowering costs, though thermal management and manufacturing consistency remain engineering challenges.
Sodium-ion and the export boom
CATL’s international ESS order book has expanded rapidly in 2026. The company is supplying 5 GWh of sodium-ion storage to Alfen in the Netherlands for deployment across Europe starting 2027, and a 2 GWh sodium-ion project with Solarpro Holding in Bulgaria is now grid-connected. Its TENER Stack system offers a 15,000-cycle life using sodium-ion chemistry. Rystad Energy forecasts Chinese battery exports for energy storage will rise 30 percent to 150 GWh in 2026.
A September 2026 change is adding urgency: China’s lithium-ion battery consumption tax exemption, in place since 2015, is set to expire. The new tax is expected to accelerate the shift toward sodium-ion for stationary storage, where energy density is less critical. Lithium carbonate prices have already fallen to a six-month low of around 140,000 yuan per tonne as manufacturers ramp output ahead of the deadline.
For CATL’s full H1 financial breakdown, international project pipeline and competitive outlook, see iEVChina’s full coverage.
Edited for madeinchinanews.com
Source: Energy-Storage.news (July 27, 2026); China Automotive Battery Innovation Alliance; Reuters; Rystad Energy; CATL official announcements.
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