China’s dominance of the global battery supply chain is unlikely to change significantly over the next two years, while an anticipated surge in battery storage shipments to Europe could put pressure on residential and commercial and industrial (C&I) storage prices toward the end of 2026, according to Ali Arfa, an analyst at EUPD Research.

Arfa said EUPD Research estimates that China’s manufacturing share varies considerably across the battery value chain. Chinese companies account for approximately 70% to 95% of raw material extraction and processing, while China’s share of cathode and anode active material manufacturing can reach around 95%.

The country accounts for approximately 80% to 90% of battery cell manufacturing and 70% to 75% of battery pack production, according to Arfa. “When you’re talking about battery packs, China’s manufacturing share is about 70% to 75%,” he told pv magazine.

The dynamics shaping global PV supply chains – including solar modules, inverters, and battery energy storage systems – will be discussed during the “Decoding solar supply chains” session at the NetZero event in Milan on Oct. 21.

The session will examine the forces reshaping clean energy supply chains, from manufacturing and sourcing strategies to shifting trade and regulatory requirements. It will also explore what these developments mean for companies procuring solar and energy storage equipment in an increasingly complex global market.

Join us in Milan to hear from industry experts and take part in the discussion on the future of solar supply chains.

The figures illustrate how China’s share gradually declines as the value chain moves closer to finished energy storage systems, with battery pack and system assembly also taking place in Europe, the United States and other markets.

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