Bernstein: Global Energy Storage 2026 Outlook — Power Storage Set to Continue Driving the Battery Rally
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Bernstein's 2026 outlook asserts that power storage will continue to drive the battery sector rally. In 2025, energy storage system (ESS) demand surged 85% and lithium prices rebounded from $8,000/ton LCE to $13,000. Consequently, Sungrow soared 137%, Ganfeng Lithium gained 160%, Tianqi Lithium rose 68%, and CATL advanced 42%.
Looking ahead, global battery demand is projected to grow approximately 32% year-over-year to 2.4 TWh in 2026, heavily driven by ESS (+50%) and electric trucks (+67%), while electric vehicle (EV) sales moderate to +14%. Bernstein expects battery value chain prices to rise 10% as capacity expansion trails demand and leading indicators like LiPF6 recover. Chinese manufacturers should continue outpacing Korean peers, with CATL holding a 36% market share.
Technological breakthroughs are expected in sodium-ion and solid-state batteries in 2026. All-solid-state batteries are slated for mass production in China by 2027. The firm's top picks include CATL (A-shares, Outperform, target price 530.00 CNY), Sungrow (Outperform, target price 260.00 RMB), and Tianqi Lithium (Outperform, target price 74.00 CNY). A key downside risk to monitor is a potential slowdown in Chinese EV demand.