What’s next for EV batteries in 2026

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Demand for electric vehicles and the batteries that power them has never been hotter.  In 2025, EVs made up over a quarter of new vehicle sales globally, up from less than 5% in 2020. Some regions are seeing even higher uptake: In China, more than 50% of new vehicle sales last year were battery electric or plug-in hybrids. In Europe, more purely electric vehicles hit the roads in December than gas-powered ones. (The US is the notable exception here, dragging down the global average with a small sales decline from 2024.)

As EVs become increasingly common on the roads, the battery world is growing too. Looking ahead, we could soon see wider adoption of new chemistries, including some that deliver lower costs or higher performance. Meanwhile, the geopolitics of batteries are shifting, and so is the policy landscape. Here’s what’s coming next for EV batteries in 2026 and beyond.

Lithium-ion batteries are the default chemistry used in EVs, personal devices, and even stationary storage systems on the grid today. But in a tough environment in some markets like the US, there’s a growing interest in cheaper alternatives.  

Sodium-ion cells have long been held up as a potentially less expensive alternative to lithium. The batteries are limited in their energy density, so they deliver a shorter range than lithium-ion. But sodium is also more abundant, so they could be cheaper.

Today, both production and demand for sodium-ion batteries are heavily centered in China. That’s likely to continue, especially after a cutback in tax credits and other financial support for the battery and EV industries in the US. One of the biggest sodium-battery companies in the US, Natron, ceased operations last year after running into funding issues.  We could also see progress in sodium-ion research: Companies and researchers are developing new materials for components including the electrolyte and electrodes, so the cells could get more comparable to lower-end lithium-ion cells in terms of energy density.

As we enter the second half of this decade, many eyes in the battery world are on big promises and claims about solid-state batteries.  These batteries could pack more energy into a smaller package by removing the liquid electrolyte, the material that ions move through when a battery is charging and discharging. With a higher energy density, they could unlock longer-range EVs.  Historically, battery makers have struggled to produce solid-state batteries at the scale needed to deliver a commercially relevant supply for EVs. 

The picture for the near future of the EV industry looks drastically different depending on where you’re standing.  Last year, China overtook Japan as the country with the most global auto sales. And more than one in three EVs made in 2025 had a CATL battery in it. Simply put, China is dominating the global battery industry, and that doesn’t seem likely to change anytime soon.  China’s influence outside its domestic market is growing especially quickly.

Even as the US lags behind, the world is electrifying transportation. By 2030, 40% of new vehicles sold around the world are projected to be electric. As we approach that milestone, expect to see more global players, a wider selection of EVs, and an even wider menu of batteries to power them.

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