Global EV & Battery Update May 2026: EV/PHEV penetration solid in EU/China vs US weak; ESS remains the clear bright spot

Research evidence excerpt

Global EV & Battery Update May 2026: EV/PHEV penetration solid in EU/China vs US weak; ESS remains the clear bright spot

nergy & Chemicals / EV

and Ford (#5). EV demand stayed weak (-18% y/y, +10% m/m) at ~6% Battery

penetration, likely reflecting fewer consumer choices as OEMs cancel new EV Parsley Ong

launches and pull back marketing. (65) 6882-8578

• China. CPCA May NEV retail sales volume came in at 0.95mn units (-7% y/y, parsley.rh.ong@jpmorgan.comJ.P. Morgan Securities Singapore Private Limited/

+12% m/m), with collective penetration at 63% (+10%pts y/y, +1%pts m/m) J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

out of a total of 1.5mn PV sales. While overall PV sales continue to fall, NEV Morgan Broking (Hong Kong) Limited

sales held relatively better. Our China auto team is turning more cautious on European Autos

domestic demand, revising 2026 retail forecasts from -4% to -15% y/y. NEVs Jose M Asumendi

are holding up relatively well with penetration exceeding 60%; NEV mix and (44-20) 7742-5315

overseas exposure are becoming more important earnings drivers than jose.m.asumendi@jpmorgan.com

J.P. Morgan Securities plc

headline industry growth (link).

EV index performance. Over the past month, Asian EV supply chain stocks have

traded soft, with Korea (-19%) and China (-13%) underperforming while Japan

outperformed (+17%). By subsector, cathodes (-19%) lagged the most, followed by

anodes (-17%), separators (-9%), cell makers (-4%) and battery foil (-1%), while

electrolytes relatively outperformed (+1%).

AIDC ESS momentum is building, with Siemens partnering with NVIDIA and

Fluence Energy to develop a reference power-and-controls architecture for AIDCs,

while Fluence has signed Master Supply Agreements with two hyperscalers with first

orders expected in 3Q.