In H1 2026, driven by the resonance of multiple demands from new energy, AI computing power, and consumer electronics, China's copper foil industry continued the high prosperity trend that began in Q4 2025. The overall industry presented a pattern of rising volumes and prices and supply-demand tightness. 1. Capacity utilization rate continued to rise, with a supply gap in high-end categories On the supply-demand side, in H1 the industry's operating rate operated at high levels overall, steadily climbing from 88.56% at the start of the year to over 91% by the end of Q2, consistently holding above the 90% mark. Demand for both lithium battery copper foil and electronic circuit copper foil strengthened simultaneously. Benefiting from the intensive roll-out of local energy storage subsidies and the rising penetration rate of NEVs in H1, power batteries maintained a high production schedule pace. Coupled with the concentrated installation rush before the "630" grid connection for energy storage, the incremental growth in demand for lithium battery copper foil was pronounced. Meanwhile, AI computing centers and 5G/6G communication equipment boosted the rapid volume growth in demand for high-end electronic copper foils such as RTF and HVLP series, driving the conversion of ordinary capacity to high-end. Consequently, a supply gap emerged in traditional electronic circuit copper foil. Moreover, against the backdrop of optimistic end-use demand and the fact that new capacity release still requires time, SMM expects that China's lithium battery copper foil supply and demand for the full year 2026 will present a slight shortage pattern. 2. Processing fees rose across the board, with the industry's profitability continuing to recover. On the price side, benefiting from supply-demand tightness, copper foil processing fees for all specifications climbed steadily. As of the end of June 2026, mainstream specification processing fees rose comprehensively compared to the start of the year: the 4.5μm lithium battery copper foil processing fee was raised by 1,000 yuan/mt to 27,000 yuan/mt; the 6μm lithium battery copper foil processing fee was raised by 2,000 yuan/mt to 21,000 yuan/mt; and the 18μm HTE copper foil processing fee rose by 3,000 yuan/mt to 21,000 yuan/mt. The rise in processing fees effectively offset cost pressure from raw material price fluctuations, strengthening the industry's profitability resilience. 3. Exports surged significantly, with the trade structure continuing to improve. Import and export, in H1 China's copper foil exports continued to surge. From January to May 2026, China's cumulative copper foil exports were 32,000 mt, surging 71.79% YoY, with new monthly highs set in March and April. The main export destinations were Thailand, South Korea, Malaysia, etc. On the import side, growth slowed down significantly; from January to May 2026, cumulative imports were 36,600 mt, up only 7.63% YoY, while imports in May fell both YoY and MoM. Domestic substitution for low and mid-end products continued to advance, but high-end HVLP series products still rely on imports from Taiwan, China, and Japan, leaving ample room for domestic substitution. The industry's trade deficit narrowed significantly from $103.14 million at the start of the year to $45.9 million in May. IV. H2 Market Outlook: The upcycle extends, with a tight supply-demand balance supporting high processing fees. Looking ahead to H2, high industry prosperity is expected to continue. On the demand side, policies supporting energy storage and digital infrastructure under the 15th Five-Year Plan will continue to be implemented, and, coupled with the advancement of renewable energy targets outside China, incremental growth potential remains. Meanwhile, the NEV penetration rate will keep rising, and seasonal strength in AI, 5G/6G, and consumer electronics will become more pronounced. On the supply side, most enterprises are currently running near full production schedules. If new capacity ramp-ups fall short of expectations, the supply-demand gap for lithium battery copper foil could widen further in Q3 and Q4, supporting processing fees at high levels. Regarding imports and exports, Japanese and Taiwan, China enterprises are accelerating their switch to high-end electronic copper foil capacity, providing Chinese domestic enterprises with ongoing export opportunities in the mid-end market. Annual exports are expected to hit a record high, and the trade deficit will continue its narrowing trend.

[SMM Analysis: Samsung SDI’s “Contrarian Big Bet” — 25 Trillion Won Staked on Next-Generation Batteries Could Rewrite Global Energy Landscape] Samsung SDI disclosed a regulatory filing on July 3, announcing an investment of approximately 16 trillion won (about 88 billion yuan) into its Ulsan plant by 2040, to build large-scale production sites for all-solid-state batteries, LFP batteries for ESS, and sodium-ion batteries. A day earlier (July 2), the company had announced an investment of 9 trillion won into its Cheonan plant, for setting up a mother production line for next-generation battery technology verification and R&D facilities. Combined, the two investments total 25 trillion won, spanning a period of 14 years and lasting until 2040.

Shanghai Metals Market (SMM) is thrilled to announce that our flagship event 2026 SMM Germany Solar & Energy Storage Forum was successfully held at the Hotel Novotel Muenchen Messe, Munich, Germany on June 23! Focused on the front-line European PV+ESS market, the forum brought together high-ranking executives and veteran industry experts from the global new energy industry chain, serving as a professional platform for in-depth China-Europe PV+ESS industry collaboration and dialogue. Opening Remarks From PV Boom to Storage-Driven Power Markets in Europe Guest Speaker: Liao Yu, Power Operation Center General Manager, LONGi Green Energy Drawing on the real landscape of Europe's energy transition, Mr. Liao systematically addressed four major industry topics: Analyzing the market dynamics behind the surge in PV capacity and frequent negative electricity prices; Reviewing new energy storage policies in key countries such as Germany and the UK, including Germany's energy storage strategy, the UK's capacity market reform, and new grid connection queue regulations; Comparing subsidy incentives and self-consumption revenue models for commercial & industrial and residential ESS across different countries; Examining the current European regulatory framework and its profound implications for the global expansion of China's PV+ESS industry chain. He noted that the industry's logic has fundamentally shifted: PV is no longer just about module manufacturing, nor is it limited to PV + energy storage hardware sales. What we are discussing is not only about cost reduction and efficiency gains in hardware, but also about how to leverage energy storage to enhance generation asset returns, control operation and maintenance costs, and optimize enterprise-wide energy asset life cycle management. Keynote Speech: How China’s Export Tax Policy and Raw Material Volatility Affect PV and Battery Pricing? Guest Speaker: Ryan Tzy Tze Yang, PV Modules and End Use Market Analyst, SMM Ryan pointed out that, hit by the dual cost shock from the cancellation of export tax rebates and raw material price fluctuations, module export quotations rose to around $0.12/W in January. Higher costs are prompting overseas clients to prioritize high-end technology pathways, accelerating the industry’s product mix shift toward high-efficiency modules. Additionally, polysilicon and silver account for a significant share of cell manufacturing costs, and their price movements remain the core variables driving cell cost fluctuations. Global PV installations entered a period of adjustment in 2026 : constrained by grid integration bottlenecks across major regions and tightening policies in multiple countries, new PV installations worldwide are expected to temporarily decline to 435 GW in 2026. Amid this deep adjustment cycle driven by infrastructure and policy constraints, the structure of end-use applications is expected to show resilience, with utility-scale projects maintaining a stable share of approximately 56%. Panel Discussion: EU Solar Projects and China’s PV Supply Chain – Opportunities and Challenges Moderator: Cleo Zhou, Overseas Business Development Manager, SMM Panelists: Ksenia Dray, Global Solar Supply Chain Leader, Res Group Pierre-Louis Raust, Head of Design and EPC Procurement, Power Capital Renewable Energy Allen Xu, Deputy General Manager, Global Marketing, Gokin Solar Co., Ltd. Huang Gengwen, Executive Dean, Module Department, Crystalline Silicon Research Institute The guests noted that the lengthy construction cycle of Europe’s local PV industry chain, wild swings in energy and raw material costs, protracted project approval and grid connection processes, local manufacturing policies that inflate supply chain layout costs, differences in technology roadmap choices and compliance standards between European and Asian industrial systems, the lack of end-user control over upstream resource prices, coupled with capacity diversion by emerging markets, are the main obstacles hindering China-EU cooperation in advancing EU PV projects. In terms of opportunities, the China-EU PV industry is highly complementary, with China offering mature capacity, complete system solutions, cost hedging tools, localized production line support, and mass production cost reduction capabilities, while Europe provides cutting-edge innovative technologies; this division of labor can jointly achieve Europe’s PV goals. Meanwhile, new technologies, customized solutions, and hedging instruments can mitigate Europe’s challenges with costs and project implementation timelines. Keynote Speech: How Technology Choices Shape BESS Economics Guest Speaker: Michael Strobel, Business Director Europe, Great Power Three Core Dimensions of BESS Economics Safety Value: Safeguard asset security and ensure business continuity and stable operation; Investment Return: Enhance life cycle return rates and reduce the levelized cost of energy storage; O&M Management: Ensure reliable equipment operation and cut full-cycle O&M expenses. High Safety Is the Core Principle of BESS Battery Cell : Use of high-quality LFP battery cells; advanced aerogel insulation technology to block thermal propagation; certified to GB, UL, IEC, UN, MSDS, and RoHS standards. Battery Pack: Battery Pack: Aerogel insulation layers block thermal propagation between battery cells. Fuse protection circuits reduce short-circuit risks; Battery Cluster: multi-level (fuses/contactors/disconnect switches) protection; Comprehensive Protection: overcharge/overdischarge/short-circuit protection. Panel Discussion: BESS Project Development in Europe: Grid, Permits, and Reality on the Ground Moderator: Liao Yu, Power Operation Center General Manager, LONGi Green Energy Panelists: Jan Fousek, CEO, Czech Energy Storage Association Gery Bonduelle, Chief of Business Development, Verkor Antonio Montoto, Head of Storage, Greenvolt Power Joanne Xu, Overseas Business Development Manager, SMM The guests noted that, at the grid level, energy storage demand across European countries far exceeds the existing grid capacity. While the responsibilities of TSOs and DSOs are clearly defined, grid operators lack sufficient resources and face approval delays, and foreign investment access is restricted with local content requirements. Policies vary widely across countries; Germany adopts a first-come, first-served mechanism for grid connection quotas, leading to clear regional market differentiation. Moreover, the permitting and implementation stage is fraught with obstacles. Large-scale centralized grid connections bring equipment compatibility and logistics challenges, such as the transportation of large-capacity storage containers. Geopolitical shifts, policy changes, and ongoing fluctuations in raw material and electricity prices constantly erode project returns. The core Central European market is fragmented across multiple countries. As a 10- to 20-year long-term investment, simply chasing low-cost equipment is not advisable. At the same time, future additional electricity loads will further strain the existing grid capacity. In response to these pain points, the speakers also proposed practical solutions: on the one hand, establish an industry association to interface with power grid operators in a unified manner, conduct pre-review of project documentation in advance, and streamline the review process; on the other hand, coordinate multiple parties including EPC contractors, the power grid, equipment suppliers, and financial institutions. For development outside China, rely on local partners to leverage the complementary strengths of the China–Europe industrial ecosystem. Enterprises can also effectively reduce risks by completing end-to-end preparations in advance, establishing a pre-operations and maintenance system, and implementing compliance support in phases. In the long run, grid connection approvals, delays in power grid capacity expansion, and price fluctuations remain the industry’s core challenges. However, the energy storage track offers ample investment opportunities; supported by integrated system solutions, new technology iterations, and industry collaboration, deployment challenges can be gradually alleviated. Meanwhile, the speakers also expect the market to see more high-quality standalone energy storage projects with sustainable and stable operations. That's the end of our 2026 SMM Germany Solar & Energy Storage Forum. Thank you for the support of all industry peers. See you next year!

Since the start of the year, growth in the European solar market has slowed markedly. SMM expects total new solar installations in the European market to fall to around 68.5GW in 2026, a year on year decline of about 2 percent. Alongside softening demand, multiple EU level supply chain restriction policies continue to advance, including the Net Zero Industry Act (NZIA), the Industrial Accelerator Act (IAA), and restrictive measures targeting inverters from so called high risk countries.

Tesla delivered 480,100 vehicles globally in Q2, up 25% YoY, far exceeding market expectations of 396,500 units. During the same period, Tesla’s energy storage installations reached 13.5 GWh, up about 41% YoY.

Grain-Oriented Silicon Steel Price Dynamics Shanghai B23R085 grade: 12,200-12,200 yuan/mt Wuhan 23RK085 grade: 11,700-11,700 yuan/mt Spot prices for cold-rolled grain-oriented silicon steel edged higher this week, with moderate trading activity in the market. Following the full implementation of earlier price hike policies by steel mills, the market digestion pace remained smooth. Traders held a strong sentiment to hold prices firm, pushing the center of spot quotations slightly higher. Demand side, just-in-time procurement by transformer and power equipment enterprises remained normalized. While end-users restocked in batches as needed, some enterprises locked in forward raw materials in advance, releasing a small amount of restocking demand, providing sufficient just-in-time demand support. Supply side, production pace at various steel mills was stable, with mainstream specification resources being released normally. Overall supply was ample, with no significant pressure from either inventory buildup or rapid destocking. Looking ahead, mainstream steel mills still show willingness to hold prices firm. Additionally, with power grid investment under the "15th Five-Year Plan" ramping up, orders from UHV and data center substation projects continue to be released, and medium and long-term downstream demand expectations continue to improve. Overall, spot prices lack downward momentum in the near term, supported by both raw material costs and terminal orders. Next week, the spot market for cold-rolled grain-oriented silicon steel is expected to maintain a generally stable with slight rise trend. Data Source Statement: Except for publicly available information, all other data is processed by SMM based on public information, market communication, and SMM's internal database models, for reference only, and does not constitute decision-making advice. Note: This article is original content belonging to this official account. For reprinting, whitelisting, cooperation, and other requests, please contact us. Without permission, the above content may not be reprinted, modified, used, sold, transferred, displayed, translated, compiled, disseminated, or disclosed to third parties or licensed for use by third parties in any form. Otherwise, once discovered, Shanghai Metals Market will pursue legal liability for infringement, including but not limited to requiring the assumption of contractual breach liability, return of unjust enrichment, and compensation for direct and indirect economic losses.