China Lithium Battery Supply Chain Sees Profit Surge as Lithium Carbonate Prices Jump

Several listed lithium battery-related companies including Zangge Mining, Yahua Group and Lianhong Xinke issued 2026 first-half earnings guidance, with most reporting net profit more than doubled year on year, according to 36Kr. The broad improvement across China’s lithium battery supply chain was attributed mainly to a sharp year-on-year rise in lithium carbonate prices. Data cited in the report showed Guangzhou Futures Exchange lithium carbonate futures briefly hit RMB 200,000 per ton in May 2026 before pulling back, while the average price in Q2 still reached RMB 177,000 per ton, above Q1 and sharply higher than a year earlier. Prices for upstream and downstream materials such as electrolyte and cathode materials also rose, while processing fees for separators and copper and aluminum foil increased slightly. The report said the lithium carbonate price rally was driven largely by a surge in energy storage demand. In Q1 2026, China’s energy storage lithium battery shipments reached 225 GWh, up 139% year on year, with energy storage batteries accounting for 42.86% of shipments. Customs data showed China’s exports of lithium-ion batteries rose by more than 50% year on year in Q1 2026.