With the brief dip during the Spring Festival lull now behind us, lithium-battery production plans surged in March! The official pre-allocated production figures for the lithium-battery industry chain as of March 2026 have been released, marking the end of February’s seasonal production slowdown that had been impacted by the Spring Festival holiday. Production scheduling across all links of the entire industrial chain has seen substantial year-on-year and month-on-month increases, with year-on-year growth ranging from 37% to 50%. Some companies have even recorded their highest-ever monthly production schedules, marking a robust production rebound in the lithium-ion battery industry.

Looking at the detailed production scheduling data, both end-user batteries and upstream materials are posting strong growth across the board, with momentum far exceeding market expectations. As the core of the industry chain, the battery segment saw a combined scheduled output of 145.5 GWh among six companies in March, up 37% year on year and 22% month on month, making it the key driver behind the expansion of upstream material production.

Growth on the upstream materials side has been even more impressive, with year-on-year increases in multiple segments soaring to a full 50%.

Among them, six cathode material companies have collectively scheduled production of 195,000 tonnes, up 50% year on year and 23% month on month. Within the sub-categories, ternary cathode materials surged by 28% month on month, while LFP increased by 24% month on month, becoming the main drivers of growth in the cathode segment; lithium cobalt oxide cathodes, by contrast, saw a modest 2% month-on-month increase. Four anode material companies have scheduled production of 163,000 tonnes, up 42% year on year and 16% month on month. Three separator manufacturers have scheduled production of 2.06 billion square meters, up 50% year on year and 9% month on month. Meanwhile, two electrolyte producers have scheduled output of 108,000 tonnes, representing a year-on-year increase of 51% and a month-on-month rise of 19%, fully demonstrating the positive momentum of full-capacity operation and sales across the entire industry chain.

This robust rebound in production scheduling is not merely a post-holiday seasonal recovery; rather, it is the result of multiple real-world demand drivers and market factors working in tandem. Earlier in February, lithium carbonate output fell 8.2% month-on-month due to factors such as the Spring Festival holiday, production-line maintenance, and a shorter number of working days, leading to a cooling in lithium-ion battery manufacturing and serving as the immediate trigger for the short-term downturn. However, even during the off-season, underlying market fundamentals remained strong: lithium carbonate inventories continued to hover at historically low levels. As of February 12, total SMM lithium carbonate inventory across the sample pool stood at just 103,000 tonnes, and downstream materials firms had already begun replenishing stocks on dips, with inventory shifting from traders to end-users—thereby securing a robust raw-material base in preparation for the resumption of production in March.

Meanwhile, multiple favorable factors on the demand side have provided solid support for a substantial increase in production scheduling.

Demand for energy storage remains robust, with energy-storage systems accounting for 54% of the incremental lithium demand in 2025—a trend that is expected to persist. Although sales of new-energy vehicles cooled in January due to policy adjustments, the subsequent launch of a flurry of new models starting in March and the surge in pre-Exhibition inventory orders ahead of the Beijing Auto Show in April have prompted automakers to place advance orders, thereby boosting demand for power batteries. Coupled with a rush to export ahead of adjustments to the battery export tax rebate policy, these favorable factors have led companies to revise upward their production schedules for March.

Market expectations for a recovery in the lithium-ion battery industry have already been priced into both the capital markets and the raw-materials market. On February 25—the second trading day of the Year of the Horse—A-share stocks across the lithium-ion battery value chain kicked off the year on a strong note, with lithium-mining and lithium-battery-electrolyte indices both surging more than 4%. Shares of major players such as Dazhong Mining, Jiangte Motor, and Suncore Industrial all hit their daily upper limits. Meanwhile, lithium carbonate prices also strengthened in tandem: the futures contract for delivery in May 2026 rose by over 11% over two days, and the spot price of battery-grade lithium carbonate climbed from RMB 145,600 per tonne before the Lunar New Year to RMB 164,400 per tonne. Driven by the synchronized movement between stocks and futures, investor sentiment in the sector has continued to heat up.

The industry is generally optimistic about the performance of the lithium-ion battery value chain in March, with incremental demand on the materials side expected to stem from export-driven gains, growing energy-storage demand, and pre-shipment inventory builds for new vehicle models, suggesting that overall lithium-ion battery material prices are likely to trend upward amid volatility. Although international investment banks remain divided on the future trajectory of lithium prices, the robust March production schedules announced by cathode and anode manufacturers already underscore the industry’s confidence in downstream demand. With the short-term impact of the Spring Festival now fully dissipating, the lithium-ion battery sector is entering a new peak production season, driven by elevated capacity utilization.