It is understood that the weekly composite operating rate of lead-acid battery enterprises across five provinces tracked by SMM from June 26 to July 2, 2026, stood at 64.1%, up 7.24 percentage points WoW. The gradual resumption of normal production by major lead-acid battery enterprises after the Dragon Boat Festival holiday was the main factor behind the rebound in the weekly operating rate. Notably, e-bike and automotive battery markets remained in the traditional off-season. Some lead-acid battery enterprises noted that battery orders in July further declined MoM from June, causing factory production not to fully recover to pre-holiday levels. If subsequent orders continue to weaken, further cuts to production line operating rates cannot be ruled out.

Entering July, end-use consumption in the e-bike and automotive battery markets remained weak. Notably, after multiple battery enterprises ran sales promotions and price cuts in June, dealer battery inventories were generally high and purchasing power declined. Some enterprises indicated that orders weakened further in early July. In the battery wholesale market, some dealers plan to stop promotions and have started to announce price increase plans—for instance, the price of e-bike lead-acid batteries is expected to rise by 20-30 yuan per unit. In addition, lead prices fell this week, prompting producers to seize the opportunity to stockpile at low prices. However, due to the off-season, actual purchases were relatively cautious and mostly dependent on order situations, leading to improved trading activity in the spot market.

On June 29, the China Automotive Battery Industry Innovation Alliance and the Zhongguancun Energy Storage Industry Technology Alliance jointly issued the "Initiative on Regulating Supplier Payment Terms for Power and Energy Storage Battery Enterprises." The initiative focuses on procurement transactions between power and energy storage battery and system integrator companies and their suppliers, offering specific recommendations on order confirmation and modification, delivery and acceptance, payment and settlement, and contract duration. On the same day, several companies including CATL, FinDreams Battery, Sunwoda Power, EVE Energy, and Hyperstrong sequentially announced their support. An official from the First Department of Equipment Industry of the Ministry of Industry and Information Technology (MIIT) stated that this initiative is an important step in implementing the "Regulation on Ensuring Payment to Small and Medium-sized Enterprises." It specifies requirements for order confirmation and modification, delivery and acceptance, and payment and settlement. For example, it stipulates that the acceptance period for materials and components should generally not exceed 7 working days; the payment cycle for SME suppliers should generally begin on the date of delivery or acceptance; it recommends that all payments to SMEs be made in cash; and it encourages both supply and demand parties to establish stable cooperative relationships and to sign long‑term framework agreements based on their existing cooperation.

At the 2026 Annual Forum of the China Automotive Battery Industry Innovation Alliance held on June 30, Ma Chunsheng, Director of the Automobile Development Division of the Equipment Industry Department I of the Ministry of Industry and Information Technology (MIIT), stated: “The global new energy vehicle industry has now entered a new stage of accelerated development, which places higher demands on power batteries in terms of safety, greenness, durability, and other performance aspects, and requires us to further strengthen innovation-driven development.” He added: “In the next step, we will strengthen coordination, improve support policies, and continue to promote the high-quality development of the power battery industry. We will intensify R&D efforts on key technologies, support upstream and downstream enterprises in joint innovation, with a focus on breaking through all-solid-state batteries, high-specific-energy lithium-ion batteries, and other critical technologies. We will increase efforts on material breakthroughs for lithium-rich manganese-based cathodes, silicon-based anodes, solid-state electrolytes, and other materials, so as to consolidate our technological capabilities. We will also enhance large-scale intelligent flexible manufacturing and testing/verification capabilities, and continuously improve product performance and quality.”

The China Automotive Battery Innovation Alliance and the Zhongguancun Energy Storage Industry Technology Alliance jointly released an initiative to standardize supplier payment practices for power and energy storage battery companies. The initiative calls for material and component acceptance within seven working days, with payment terms for SME suppliers generally starting from delivery or acceptance, and advocates full cash payments to small and medium-sized suppliers. China's Ministry of Industry and Information Technology (MIIT) said the initiative is an important step in implementing regulations on timely payments to SMEs.

SMM, June 29: Dealers in Hunan reported that end-use consumption in the automotive battery market was sluggish, retailers' procurement demand was limited, battery inventories were above two months, and battery wholesale market selling prices remained unchanged, for example, the main model 6-QW-60Ah at 240 yuan per unit. Manufacturers in Anhui reported that replacement demand in the automotive battery market was weak, dealers were cautious in procurement, finished product inventories were high, the factory operating rate was currently at 70-80%, and raw material lead was purchased only through long-term contracts. Manufacturers in Zhejiang reported that the off-season trend in the automotive battery market persisted, finished product orders were poor, to avoid inventory buildup, the factory's production line operating rate was below 80%, and short-term production focused mainly on consuming lead inventories.