At the beginning of 2026, the global energy storage industry entered a new phase of GW-scale installation competition. A pivotal technological iteration has emerged in the battery cell segment: large-capacity 500Ah+ lithium iron phosphate (LFP) cells have shifted from technical validation to full-scale mass production. Leveraging comprehensive advantages across the entire industrial chain, Chinese lithium battery manufacturers have become the unequivocal leaders of this transformation. Notably, the salt lake lithium extraction sector, positioned at the core upstream of the lithium battery value chain, has provided stable lithium resource support for large-cell mass production through technological breakthroughs and cost advantages. It has become a critical pillar underpinning China’s global leadership in lithium batteries.
Industry leaders such as CATL, EVE Energy, and Hithium have completed mass production delivery and capacity ramp-up of large-capacity cells. Meanwhile, second-tier players including AESC and CALB are accelerating deployment, gradually forming diversified product matrices across multiple specifications. Data show that in 2025, China’s cumulative shipments of 500Ah+ energy storage cells exceeded 5 GWh, with over 90% exported overseas. These large-capacity cells have become a new core driving force behind China’s lithium battery expansion into global markets. Behind this achievement lies the continuous empowerment of the salt lake lithium extraction industry.
Core of technological iteration: large-capacity cells + salt lake lithium extraction
The large-scale commercialization of 500Ah+ cells represents an inevitable step in the evolution of the global energy storage industry. As renewable energy integration demands continue to rise and long-duration energy storage policies are progressively implemented, traditional 280–314Ah cells can no longer meet the requirements of container-level storage systems for high integration and lower system costs. Large-capacity cells have therefore become the widely recognized upgrade pathway. The realization of their core advantages, however, depends on stable upstream lithium supply and cost optimization where salt lake lithium extraction plays a pivotal supporting role.
By increasing single-cell capacity, large-format cells enable system-level cost reductions: the number of cells per container is reduced by over 60%; structural component costs decrease by 15–20%; assembly efficiency improves by 30%; system energy density increases by more than 25%. Meanwhile, China’s salt lake lithium extraction technologies continue to achieve breakthroughs. The alkaline solution solvent extraction lithium recovery technology pioneered by Qinghai Institute of Salt Lakes, Chinese Academy of Sciences has realized industrial-scale application at the 10,000-ton level, maintaining lithium recovery rates above 98%. This advancement significantly lowers lithium extraction costs and provides a solid low-cost raw material foundation for the mass production of large-capacity cells, further driving cost reduction and efficiency enhancement across the entire lithium battery value chain.
Tiered corporate deployment highlights full-value-chain advantages
Leading lithium battery enterprises have established differentiated competitive positions by leveraging technological strength and production scale. For example, CATL’s 587Ah cell achieves an energy density of 434 Wh/L and a cycle life exceeding 10,000 cycles, with stable output from its 60GWh production base in Jining, Shandong. EVE Energy’s 628Ah large-capacity cell has entered the long-duration energy storage market, securing a 2.2GWh long-term order in Australia. Hithium has achieved mass production of both 587Ah and 1175Ah cells and signed overseas agreements totaling more than 6.5GWh. Sunwoda’s 684Ah cell has set a new industry benchmark for energy density.
Meanwhile, second-tier players are actively positioning themselves in this emerging segment. AESC, CALB, and REPT Battero have successively launched related products, collectively enabling China to establish the world’s only fully integrated 500Ah+ large-cell supply chain. The stable operation of this comprehensive ecosystem relies heavily on the capacity expansion of the salt lake lithium extraction industry. In regions such as Xizang and Qinghai, salt lake lithium extraction projects are gradually coming online, with planned capacity reaching 400,000 tons. This expansion is expected to further ease lithium resource supply constraints and provide solid support for the sustained growth of the large-capacity cell industry.
Technological enablement and market expansion
The mass production of large-capacity cells is supported by comprehensive breakthroughs achieved by China’s lithium battery industry in materials and manufacturing processes. The cross-scenario application of automotive-grade technologies has accelerated the commercialization of technological achievements. On the materials side, high-compaction lithium iron phosphate (LFP) materials have undergone modification and upgrading. As the core raw material, lithium carbonate is increasingly sourced from salt lake extraction. Benefiting from a cost advantage of RMB 30,000–40,000 (approximately USD 4,374–5,832) per ton, lithium carbonate derived from salt lake extraction further optimizes the cost structure of cathode materials. On the process side, advancements in stacking and winding technologies have reduced single-cell defect rates to the PPB (parts-per-billion) level, ensuring the consistency of large-capacity cells.
On the market side, overseas expansion has become the primary source of incremental growth. In 2025, overseas orders accounted for more than 90% of domestic shipments of 500Ah+ cells, mainly targeting regions with strong demand for long-duration energy storage, including Europe, North America, and the Middle East. Chinese enterprises have adopted an integrated “cell–system–solution” model to address the challenges posed by fragmented specifications. Meanwhile, the scaled development driven by technological breakthroughs in the salt lake lithium extraction industry continues to enhance the global competitiveness of China’s lithium battery value chain, supporting large-capacity cell products in expanding their presence in the global market.
Existing barriers and outlook for 2026
The industry continues to face three major challenges: thermal management safety, manufacturing consistency, and fragmented specifications. These issues are expected to become key priorities in 2026. Industry analysis indicates that future competition will shift from a sole focus on capacity expansion to a broader assessment of overall capabilities. The 587Ah format is likely to emerge as the mainstream specification, vehicle–energy storage integration will deepen further, and supply chain stability will become a core competitive advantage.
Against this backdrop, the integration between salt lake lithium extraction and the large-capacity cell industry will become increasingly close. Technology providers specializing in direct lithium extraction (DLE), such as Bichem, will continue to optimize comprehensive DLE solution models. Through ongoing improvements in adsorption, membrane separation, solvent extraction, and other processes, they will progressively release salt lake lithium extraction capacity. They will provide the large-capacity cell industry with a more stable and cost-competitive lithium supply, help address global lithium resource constraints, and sustain the upgrading of the global energy storage industry. At the same time, they will support China’s transition from exporting lithium battery products to exporting integrated technological solutions, providing critical support for global carbon neutrality goals.
