EAX Insights | Monthly Review of the New Energy Charging and Battery Swapping Industry (February 2026)

2026-05-26

Canada Plans to Scrap Mandatory Electric Vehicle Sales Regulations

On February 5, Canadian Prime Minister Mark Carney is set to announce a new fuel-efficiency standards framework for passenger cars and trucks, replacing the mandatory electric vehicle requirements strongly opposed by the automotive industry.The plan also aims to protect automotive manufacturing jobs by offering better market access to companies that build vehicles in Canada. The Canadian government’s automotive industry plan seeks to reduce the domestic auto sector’s dependence on U.S. automakers and also plans to restart purchase incentives for electric vehicle consumers, with subsidy levels comparable to the previous zero-emission vehicle program.

Japan: Toyota-Affiliated Company Plans 2GWh Energy Storage Battery Plant with Investment Exceeding RMB 3.1 Billion!

On February 18, major Japanese battery company GS Yuasa International Ltd. announced the launch of its “Battery Stable Supply Assurance Plan” and plans to build a manufacturing plant north of Tokyo with an annual production capacity of 2GWh energy storage batteries. The project has a total investment of JPY 70.3 billion (approximately RMB 3.13 billion), with production scheduled to begin in October 2028, when it will become one of Japan’s largest battery factories.

Philippines Updates Policy, Requiring Large Renewable Energy Projects to Integrate Energy Storage Systems

On February 26, the Philippine Department of Energy issued Department Circular No. DC2026-02-0008, strengthening the implementation of energy storage system (ESS) policies, to improve renewable energy reliability and grid stability. The revised circular supplements DC No. DC2023-04-0008 and introduces a requirement for proposed variable renewable energy (VRE) power plants with an installed capacity of 10 megawatts (MW) or more to mandatorily integrate energy storage systemsUnder the updated framework, such projects must integrate an energy storage system equivalent to at least 20% of the plant’s installed capacity, and must meet system study and technical requirements.

The Department of Energy stated that the policy aims to advance the country’s just energy transition by increasing renewable energy penetration while maintaining power quality, reliability, and overall system stability in both grid-connected and off-grid areas. Energy storage systems (ESS)installations are encouraged to integrate grid-support functions, including grid-forming inverters capable of stabilizing voltage and frequency (GFM). These technologies are intended to address the variability of renewable power generation, optimize dispatch, reduce curtailment, and enhance grid resilience under fluctuating conditions while maintaining a safe and reliable power supply.

Jiangsu: Notice of the Kunshan Municipal Government Office on Issuing the 2026 Action Plan for Optimizing the Business Environment in Kunshan

On February 2, the Kunshan Municipal Government Office issued the Notice on the 2026 Action Plan for Optimizing the Business Environment in Kunshan.It states that Kunshan will vigorously promote green electricity use in industrial parks and enterprises, explore direct green power supply models, meet green energy demand, advance the development of zero-carbon parks and zero-carbon factories, and support enterprises in their green and low-carbon transformation. It will establish green electricity and green certificate and carbon service windows to provide one-stop services for green electricity and green certificates. Key energy-consuming entities will be encouraged and guided to use green electricity, stimulating society-wide green power consumption. The electricity connection application service mechanism for EV charging and battery swapping facilities will also be optimized, with application materials further simplified and connection service efficiency continuously improved.

Sichuan: Notice by Three Departments Including the Leshan Municipal Housing and Urban-Rural Development Bureau on Issuing the Special Action Plan for Carbon Peaking in Urban and Rural Construction in Leshan

On February 3, the Leshan Municipal Housing and Urban-Rural Development Bureau, Leshan Municipal Development and Reform Commission, and Leshan Municipal Natural Resources and Planning Bureau jointly issued the Special Action Plan for Carbon Peaking in Urban and Rural Construction in Leshan. It states that ,in 2026, priority will be given to the construction of community charging and battery swapping facilities, along with plans to build and upgrade charging infrastructure in existing residential communities.

Strengthen the development of green transportation infrastructure. Integrate green and low-carbon principles throughout the planning, construction, operation, and maintenance of transportation infrastructure to reduce life-cycle energy consumption and carbon emissions. Promote deeper integration of new energy and transportation, steadily advance the planning and construction of charging piles, battery swap stations, gas stations, and other infrastructure across the city, and develop photovoltaic power generation facilities according to local conditions. Build an efficiently connected, convenient, and comfortable public transportation service system, further optimize bus networks, promote diversified mobility services, and support the healthy development of green transportation modes such as shared bicycles and electric vehicles.

Liaoning: Notice of the Liaoning Provincial People’s Government on Issuing the 2026 Division of Key Tasks for the Provincial Government Work Report

On February 8, the General Office of the Liaoning Provincial People’s Government issued the 2026 Division of Key Tasks for the Provincial Government Work Report. It states that application materials for residential charging pile connections will be simplified, with charging facility connections completed for 130,000 households during the year; 130 new charging parking spaces will be added at expressway service areas, raising the share of charging spaces to more than 15% of total parking spaces and easing charging difficulties during holiday travel peaks and other high-demand periods.

State Council: Improving the Nationwide Unified Electricity Market System

On February 11, 2026, the General Office of the State Council issued the Implementation Opinions on Improving the Nationwide Unified Electricity Market System (hereinafter referred to as the “Opinions”), a programmatic document for deepening power sector reform, building a unified national market, and supporting the development of the new power system and the new energy system. Based on the new stage of China’s energy transition and power industry development, the Opinions define the top-level design, implementation path, and key objectives for building the nationwide unified electricity market system, providing fundamental guidance for the optimized nationwide allocation of power resources, full implementation of market-based mechanisms, and high-quality industry development.

The Need for a Nationwide Unified Electricity Market Is Becoming Increasingly Evident

The Opinions set out five key tasks: first, promote the optimized nationwide allocation of power resources, improve interprovincial and interregional trading mechanisms, and break down market fragmentation and regional barriers; second, improve the full-function electricity market system and build a multi-level market in which medium- and long-term, spot, ancillary service, green electricity, capacity, and retail markets develop in coordination; third, promote equal participation by all types of market entities, bring all generation categories into the market, enable comprehensive direct participation on the user side, and support the standardized development of new market participants; fourth, establish a unified national institutional framework covering trading rules, technical standards, electricity pricing mechanisms, and credit systems; fifth, strengthen policy coordination and risk prevention and control, improve planning coordination, emergency support mechanisms, and market evaluation, and ensure safe and stable market operation.

Improving the Nationwide Unified Electricity Market System,is a milestone in deepening power sector reform, an important component of building a unified national market, and a strategic foundation for safeguarding energy security, advancing the green transition, and enabling high-quality economic development. The goals, pathways, and innovative measures specified in the Opinions address long-standing institutional and structural barriers constraining electricity market development and establish a unified, open, orderly, competitive, safe, efficient, and well-governed market system, providing clear direction for the long-term healthy development of the power industry. It will provide strong momentum for building the new power system and achieving carbon peaking and carbon neutrality goals, while helping China’s energy industry move toward the middle and high end of the global value chain.

▲Source: China Science and Technology Investment

Global Electricity Demand Is Expected to Grow Strongly Through 2030, Highlighting the Need for Grid Investment and Flexibility

The latest International Energy Agency (IEA) report forecasts that, together with growth in natural gas, renewables and nuclear power will raise their share of the global electricity mix to 50% by the end of this decade.

The report notes that as the age of electricity arrives, electricity demand is expected to grow at least 2.5 times faster than overall energy demand through 2030.This is mainly driven by rising industrial electricity use, increasing EV adoption, greater use of air conditioning, and the expansion of data centers and artificial intelligence. Although emerging and developing economies remain the main drivers, electricity consumption in advanced economies is also recovering after 15 years of stagnation, contributing one-fifth of total electricity demand growth through 2030.

The report finds that, driven by solar PV deployment, global renewable power generation is overtaking coal-fired generation. Nuclear power generation is also reaching record highs. By 2030, low-emissions energy sources will collectively supply 50% of global electricity, up from 42% today.

Natural gas-fired generation is expected to continue growing through 2030, supported by rising electricity demand in the United States and a shift from oil to natural gas in power generation in the Middle East. Meanwhile, coal-fired power generation is expected to gradually decline globally, falling back to 2021 levels by the end of the century. As a result, carbon dioxide emissions from global electricity production are expected to remain broadly stable over this period.

The report emphasizes that these trends create an urgent need for rapid expansion of grids and system flexibility. Currently, more than 2,500 GW of projects—including renewables, energy storage, and large-load projects such as data centers—are waiting in grid connection queues worldwide.

New analysis shows that by advancing grid expansion, deploying enhanced technologies, and implementing regulatory reforms, as much as 1,600 GW of queued projects could potentially be integrated into the grid in the short term, unlocking grid capacity more efficiently.

Keisuke Sadamori, Director of Energy Markets and Security at the IEA, said that global electricity demand growth is far outpacing that of the past decade, and the increase in global electricity consumption by 2030 is expected to exceed the current electricity consumption of two European Unions.To meet demand, annual grid investment needs to increase by 50%, while flexibility must expand in parallel and security and resilience must be strengthened.

The report notes that utility-scale battery storage installations have risen sharply, becoming an important source of short-term flexibility.Markets including California, Germany, Texas, South Australia, and the United Kingdom have all seen strong growth in battery deployment.

“Electricity2026” also emphasizes that electricity affordability is becoming an increasingly critical issue. Since 2019, household electricity prices in many countries have risen faster than incomes, placing pressure on businesses as well. Policy design therefore needs to attract investment while improving flexibility and efficiency across all parts of the power system.

The report notes that greater efforts are needed to strengthen the security and resilience of power systems worldwide, as they face increasing risks associated with aging infrastructure, extreme weather events, cyber threats, and other emerging vulnerabilities. It emphasizes that modernizing system operations and strengthening the physical protection of critical infrastructure are essential to addressing these threats.

▲Source: IEA (International Energy Agency)

Sales Recovery, Competitive Reshuffling and Powertrain Transformation: A Panoramic Review of China’s Passenger Vehicle Market in 2025

China’s domestic passenger vehicle market is approaching a historic high.In 2025, domestic passenger vehicle sales reached 24.065 million units, up 6.4% year on year and close to the 2017 peak. The vehicle trade-in policy played a key role, with more than 11.5 million vehicles traded in during 2025. New energy vehicle sales continued to grow and became the market mainstream. Domestic sales of new energy passenger vehicles reached 13.005 million units in 2025, up 17.7% year on year, with a penetration rate of 54%.

The emerging EV brand landscape underwent a major reshuffle.Looking at sales trends among emerging EV brands from 2020 to 2025, the industry showed a clear divide between brands being eliminated and others breaking through. The number of domestic new energy brands with annual sales exceeding 10,000 units increased from 16 in 2020 to 53. HIMA, Tesla, Li Auto, XPeng, NIO, Leapmotor, Xiaomi, and other brands achieved breakthroughs through technological innovation, product iteration, and precise market positioning. Meanwhile, companies such as Neta and WM Motor gradually exited market competition due to a lack of core product competitiveness, unclear market positioning, and other issues.

Domestic automakers and emerging EV brands have alternately driven growth in the new energy vehicle market.In 2025, China’s domestic new energy passenger vehicle penetration rate reached 54%, making new energy vehicles the mainstream choice in the market. At different stages of development, automakers’ contributions to market growth showed a clear rotation. From 2020 to 2022, growth in new energy passenger vehicles was driven mainly by BYD, Tesla, and SAIC-GM-Wuling. BYD captured market share through its full-industry-chain strategy and broad model coverage; Tesla consolidated its position in the premium market through brand and technology advantages; and Wuling tapped lower-tier market demand with highly cost-effective models. From 2022 to 2024, BYD maintained strong growth, while Geely, SERES, and Li Auto entered a period of rapid growth. Geely broadened its audience through a multi-brand new energy portfolio, SERES achieved a sales leap through a cross-sector collaboration model, and Li Auto precisely addressed family users’ needs with its range-extended technology route. Entering 2024-2025, the growth baton shifted again: Geely’s new energy vehicle sales increased by more than 600,000 units, while Xiaomi, XPeng, Leapmotor, and other brands each grew by more than 200,000 units, becoming new forces driving market expansion.

Diversified powertrain types are driving broad-based, multi-level expansion of the new energy vehicle market.Battery electric vehicles have consistently been the core engine driving overall new energy vehicle growth, with sales rising from 920,000 units in 2020 to 7.712 million units in 2025, continuing to lead the pace of market growth.From 2022 to 2024, plug-in hybrid and range-extended models entered a period of rapid volume growth, complementing battery electric vehicles. Their growth rate at one point exceeded that of the battery electric market, and their share of new energy vehicle sales increased from 25% to 42%. This not only improved the new energy vehicle product portfolio but also directly addressed some consumers’ range concerns and diverse mobility needs.

As charging infrastructure networks become denser and 800V high-voltage fast-charging technology is deployed at scale, users’ charging anxiety has been significantly reduced.In 2025, battery electric vehicles regained momentum and became the main driver of growth in the new energy vehicle market.

▲Source: Chebaihui Research Institute

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