Rapid growth in battery energy storage is strengthening the outlook for lithium demand in 2026, raising expectations of a faster recovery for an industry that has struggled with oversupply since late 2022 Analysts say reforms in China’s power sector and surging global investment in data centres have driven stronger-than-expected demand for lithium used in stationary storage systems
China’s energy storage market expanded sharply in the second half of 2025, supported by policy changes and rising power system needs