Market Outlook and Forecast for the Chinese Energy Storage Battery Industry by 2025
The energy storage battery sector primarily refers to batteries used in solar and wind energy systems for renewable energy storage. As a core component of energy storage systems, the demand for these batteries is expected to grow significantly due to the flourishing downstream market.
1. Definition of Energy Storage Batteries
Energy storage batteries are systems designed to store electrical energy. They convert electrical energy into chemical energy, storing the charge within the battery, which can be released when needed. The predominant technologies in this field include lithium-ion batteries, lead-acid batteries, sodium-sulfur batteries, and flow batteries. Lithium-ion batteries are becoming the mainstream option in electrochemical energy storage due to their high energy density and long lifespan.
2. Development Policies for the Energy Storage Battery Industry
The Chinese government has introduced a series of policies aimed at guiding and supporting the healthy development of the energy storage battery industry. Notable initiatives include the “Action Plan for High-Quality Development of New Energy Storage Manufacturing” and “Accelerating the Construction of a New Power System (2024-2027).” These policies provide a clear and expansive market outlook for the industry.
3. Current State of the Energy Storage Battery Industry
1. Scale of New Energy Storage Installations
China is rapidly advancing the high-quality development of new energy storage. According to the China Business Industry Research Institute, the installed capacity of new energy storage is expected to exceed 70GW by 2024. By the end of 2024, the cumulative installed capacity of new energy storage projects in the country is projected to reach 73.76GW, approximately 20 times that of the end of the 13th Five-Year Plan, representing a growth of over 130% from the previous year. Analysts predict that by 2025, the cumulative installed capacity will reach 131.3GW.
2. Market Share of New Energy Storage Technologies
Recent years have seen a surge of new technologies in the energy storage sector. Among these, lithium-ion battery storage has dominated the market, accounting for 97.3% by the end of 2023. Other technologies include lead-acid batteries at 1.2%, flow battery storage at 0.6%, supercapacitors at 0.1%, and other new storage technologies at 0.8%.
3. Global Energy Storage Battery Shipment Volume
Amid the continuous growth of wind and solar installations and the acceleration of 5G base station construction, global shipments of energy storage lithium batteries are experiencing rapid growth. A report by the China Business Industry Research Institute forecasts that global energy storage battery shipments will reach an impressive 301GWh in 2024, representing a 62% increase from 2023. By 2025, shipments are expected to reach 451.5GWh.
4. China’s Energy Storage Battery Shipment Volume
In response to the “dual carbon” goals and supportive policies, China’s energy storage battery shipments are witnessing explosive growth. The same report projects that approximately 216GWh of energy storage batteries will be shipped in China in 2024, with a five-year average compound annual growth rate of 91.68%. By 2025, shipments are anticipated to reach 324GWh.
5. Market Share of Key Enterprises
Regarding enterprise shipment volume, companies such as CATL, BYD, EVE Energy, and others collectively hold 71% of the global energy storage battery market. CATL leads with a shipment volume of 110GWh, capturing 36.5% of the market share.
4. Key Enterprises in the Energy Storage Battery Industry
1. CATL
Founded in 2011 and headquartered in Ningde, CATL is a global leader in the research, production, and sales of power and energy storage batteries. The company operates eleven manufacturing bases across China and has strategically expanded overseas. In the first three quarters of 2024, CATL reported a revenue of 259.045 billion yuan, a decrease of 12.09% year-on-year, with a net profit of 36 billion yuan, reflecting a growth of 15.59%.
2. EVE Energy
Established in 2001, EVE Energy entered the energy storage sector in 2016 and has focused on various storage products. The company has production bases in Huizhou and other locations, with international expansion into Hungary and Malaysia. In the first three quarters of 2024, EVE Energy reported total revenue of 34.049 billion yuan, a decline of 4.16% year-on-year, with a net profit of 3.189 billion yuan, down by 6.88%.
3. BYD
BYD has a history in the energy storage sector dating back to 2008. The company focuses on technological innovation and real-world applications of various storage systems and has established production bases globally. In 2024, BYD reported a revenue of 502.251 billion yuan, an increase of 18.9% year-on-year, with a net profit of 25.238 billion yuan, up by 18.1%.
4. Zhongxin Innovation
Zhongxin Innovation specializes in lithium-ion power batteries, battery management systems, and energy storage batteries. The company has adopted a dual-engine strategy of integrating power and storage. In the first half of 2024, Zhongxin Innovation reported total revenue of 12.469 billion yuan, reflecting a 1.4% increase year-on-year, with a net profit of 249 million yuan.
5. Guoxuan High-Tech
Guoxuan High-Tech focuses on lithium iron phosphate and ternary battery materials, providing solutions for electric vehicles and energy storage applications. In the first three quarters of 2024, the company reported revenue of 25.175 billion yuan, a year-on-year increase of 15.6%, with a net profit of 412 million yuan, reflecting a 41.11% increase.
5. Future Outlook for the Energy Storage Battery Industry
1. Policy Support
National and local governments have implemented numerous policies to promote the development of the energy storage battery industry. The “14th Five-Year Plan for New Energy Storage Development” aims to transition from the initial commercialization stage to large-scale development by 2025, facilitating widespread commercial applications.
2. Growing Market Demand
With the world’s increasing reliance on renewable energy and the rising demand for energy storage in power systems, the market for energy storage batteries is expected to expand continuously. In particular, China’s energy storage battery shipments are projected to experience exponential growth due to the implementation of the “dual carbon” goals and supportive policies. Global energy storage battery shipments are expected to rise from 301GWh in 2024 to 1400GWh by 2030.
3. Diverse Application Scenarios
The application scenarios for energy storage batteries are diversifying. Beyond traditional power storage, there is growing interest in residential storage, communication storage, and portable storage solutions. Furthermore, advancements in solar storage systems are expanding opportunities for energy storage batteries in integrated charging stations, electric flying vehicles, and other transportation applications.
For more detailed information, please refer to the 2025-2030 China Energy Storage Battery Market Research and Investment Strategy Consulting Report published by the China Business Industry Research Institute, which also offers various consulting services, including industry data analysis, market reports, and feasibility studies.
