EV and battery market outlook 2026: half-time report

Surging raw materials costs and higher prices failed to stymie EV and battery market growth in the first half of 2026, suggesting a maturing industry and increasingly robust supply chain.

Drawing on unique data and insight from Wood Mackenzie’s expert analysts, our Electric vehicle and battery supply chain: Mid-year check-in report highlights sector trends in H1 2026 and makes four key predictions for H2 2026 and beyond.

Fill in the form for your free copy of the report, and read on for a short introduction to its key themes.

1. Chinese EVs will bolster electrification across markets

At the beginning of the year, we predicted 2026 would be when Chinese EVs went global — powered by scale across the full battery-EV ecosystem, rapid product development and acceptance of low near-term profit margins.

What we couldn’t have foreseen was how the rise in petrol and diesel prices driven by events in the Gulf would push consumers towards electric vehicles, with Chinese manufacturers dominating international sales. Get a detailed breakdown of Chinese market share by region in the full report.

2. Established Chinese cell makers and new entrants push into export markets

Asian players including CATL, BYD and LG Energy Solution led global consolidation of battery cell manufacturing in H1 2026. The first half of the year saw only one major capacity announcement, in the form of EVE’s planned 230 gigawatt hour (GWh) LFP production expansion in China. However Chinese production increased by 52% on H1 2025, thanks to meaningfully higher utilisation rates of existing capacity.

With their domestic market showing signs of saturation, Chinese cell manufacturers are accelerating their push into overseas markets. Read the full report to find out more about which Asian players are building capacity where — and which non-Chinese manufacturers are feeling the pressure.

3. Next-generation battery technologies place fast-charging centre stage

New battery technology is progressing as rapidly as we predicted, with the timelines for commercialising new innovations measured in years not decades. Fast-charging is a key current focus for cell manufacturers — download the full report for an overview of charging times by make and model for the most advanced battery technology announced in H1 2026.

4. New segments will provide significant demand upside for batteries

ESS shipments show no signs of slowing despite the reduction in China’s export tax rebate announced in April, with AI datacentres a key driver. ESS now accounts for nearly as much incremental growth as EVs, and we expect further upside as more projects enter the pipeline.

Several other segments are beginning to electrify, offering significant future demand potential — find out more in the full report.

Remember to fill out the form to download your free copy of the report, which covers these topics in more detail with supporting charts and data.