New Opportunities in Energy Storage: China’s Share of Global Energy Storage Battery Shipments Exceeds 93%, But What Challenges Await as They Expand Internationally?
Energy storage technology is crucial for the large-scale application of renewable energy and the construction of a new power system, and it is experiencing unprecedented development opportunities. China is a major player in the energy storage industry, but it faces multiple challenges in further developing its capabilities, including the need for technological breakthroughs, cost optimization, and innovative business models.
On March 20, the CESC2025 Third International Energy Storage Conference and Smart Energy Storage Technology and Application Exhibition opened in Nanjing. The conference featured a summit forum, exhibitions, and several parallel activities focusing on topics such as the new energy ship industry, hydrogen energy sector, and the safe, efficient, and green development of energy storage through powder coating technology. Experts, scholars, corporate representatives, and financial institutions from the energy storage field gathered for discussions.
During a roundtable dialogue themed “Diverse Collaboration to Build an Energy Storage Ecosystem, Supporting Carbon Neutral Goals and Driving a Green Future,” Professor Wu Yuping from Southeast University moderated a discussion with several prominent figures, including Liu Xiaoyan, Chair of the China-Australia Free Trade Association Forum; Liu Daqian, Deputy Director of the New Energy Engineering Institute at Shanghai Electric Power Design Institute; Hans Funk, General Manager of HENN Architecture; Lian Zhanwei, General Manager of New Source Smart Storage Energy Development (Beijing) Co., Ltd.; and Wang Hongwei, General Manager of Lixinghang Energy.
In 2024, the global energy storage battery shipment volume is projected to reach 369.8 GWh, representing a year-on-year increase of 64.9%. Chinese companies will account for 345.8 GWh of this total, which means they will represent over 93% of global shipments. Wang Hongwei emphasized that energy storage is a vital component of microgrid systems. For Chinese storage technology and solutions to expand globally, it is essential to address several issues: understanding their own positioning and that of their customers, enhancing the safety and performance of storage products, and personalizing solutions.
As the proportion of renewable energy generation increases, the application of energy storage technology within power systems has become widespread. In operational terms, energy storage is primarily used in three scenarios: power generation, the grid, and the user side. In recent years, commercial and industrial energy storage on the user side has developed rapidly, and it is anticipated that by 2025, the growth rate of new installations in this area will surpass the average growth rate of the entire energy storage market, leading the domestic market to exceed 10 billion yuan.
Chinese energy storage companies are accelerating their international expansion as global energy transitions and storage technology matures. InfoLink forecasts that by 2025, global energy storage cell shipments will reach 392 GWh, a year-on-year increase of 25%. According to data from the National Energy Administration, by the end of 2024, the total installed capacity of newly operational energy storage projects in China will reach 73.76 million kW (168 million kWh), approximately 20 times the capacity at the end of the 13th Five-Year Plan period, with a growth of over 130% compared to the end of 2023. The average energy storage duration has extended to 2.3 hours, an increase of about 0.2 hours from the end of 2023.
Chinese energy storage enterprises are demonstrating strong competitiveness in international markets. A white paper jointly released by EVTank and the Chinese Battery Industry Research Institute indicates that in 2024, the global energy storage battery shipment volume will reach 369.8 GWh, with a staggering year-on-year growth rate of 64.9%. Of this, Chinese companies’ shipments will total 345.8 GWh, accounting for 93.5% of the global market, an increase of 2.6 percentage points from the previous year.
In 2024, the overseas market is expected to grow rapidly, with significant increases in energy storage bids and installations in Europe, the Middle East, and the Asia-Pacific regions. According to statistics from Gao Gong Industry Research Institute, in 2024, orders for Chinese lithium energy storage batteries exported will exceed 120 GWh, primarily to Europe, Southeast Asia, the Middle East, and the United States, with demand from European and American owners accounting for 73%.
Wang Hongwei pointed out that energy storage is an essential element of microgrid systems. Lixinghang Energy specializes in integrated microgrid systems for distributed energy, focusing on the development of distributed energy and microgrid systems. Their products mainly include photovoltaic systems, energy storage, gas turbine generation, and energy management platforms.
He further noted that for Chinese storage technology and solutions to succeed in global markets, it is crucial to address various issues, including understanding their own positioning and that of their customers and improving the safety, performance, and personalization of storage products.
Many Chinese energy enterprises are accelerating their international ventures, and Australia is emerging as a key destination. The collaboration between China and Australia in the renewable energy sector is built on solid foundations and strong complementary advantages. Australia boasts abundant wind and solar resources, with photovoltaic and wind power accounting for approximately 65% of its total electricity generation by the end of 2022. China has significant technological advantages and extensive construction experience in wind power, solar energy, and storage technologies. In recent years, many Chinese companies have actively participated in renewable energy project development in Australia, deepening collaboration between the two nations.
Liu Xiaoyan stated that renewable energy will be a focal point for future cooperation between China and Australia, with potential collaborations spanning various areas. “Australia has rich renewable energy resources, including significant tidal energy, which holds great development value,” she noted, emphasizing the need to encourage and support domestic companies in investing and establishing factories in Australia. Chinese companies can also explore local applications for electric vehicles and energy storage within Australia.
Widespread Applications of Energy Storage: Compared to traditional thermal power generation, renewable energy generation offers advantages such as being green, clean, and low-carbon. However, some clean energy technologies face challenges related to volatility and intermittency, making it difficult to ensure the overall stability of the grid system. Effectively utilizing energy storage technology can help mitigate these issues and enhance the safety of integrating renewable energy into the grid.
For instance, in Xinjiang, the region’s climate characteristics, such as extreme heat with no wind, extreme cold with no wind, and limited sunlight during winter, lead to a distinctive energy output pattern characterized by high levels in spring and autumn and low levels in summer and winter, posing challenges for power supply security. The development of new energy storage in Xinjiang has shown characteristics of scaling, marketization, and diversification, effectively meeting the needs of the new energy power system in the region.
According to data from the State Grid Xinjiang Electric Power Company, by the end of February this year, Xinjiang had completed over 200 new energy storage power stations, with a total installed capacity of 9.777 million kW (32.663 million kWh), significantly promoting the consumption of new energy. In 2024, Xinjiang’s new energy storage will achieve a total charging capacity of 4.48 billion kWh, effectively enhancing the utilization rate of new energy by 3.6%.
Liu Daqian noted that energy storage technology is widely applied within power systems, with the increasing penetration of renewable energy necessitating a greater role for energy storage to address the inherent volatility that cannot be adjusted. Operationally, energy storage is primarily applied in three scenarios: power generation, the grid, and the user side.
“The design integration of energy storage systems at the power generation, grid, and user sides shares commonalities,” explained Lian Zhanwei. The power side primarily addresses issues related to integrating renewable energy into the grid, while the grid side currently focuses on peak regulation, frequency regulation, and supporting power and voltage. The user side mainly involves commercial and industrial energy storage, which is relatively rare in households.
New Source Smart Storage, a platform company under China Power Investment Corporation, specializes in the research and development of primary energy system technologies and system integration. Established in 2021, it has emerged as one of the top three companies in terms of national shipments by 2023. New Source Smart Storage primarily focuses on the development of key components for energy storage systems, as well as integrating the entire energy storage system, including commercial and industrial storage and energy storage power stations. One of their notable products is the integrated commercial storage unit launched in collaboration with the Ministry of Emergency Management, aimed at fundamentally addressing safety issues in energy storage.
In 2023, commercial and industrial energy storage accounted for less than 3% of China’s new energy storage installations, but this figure is expected to rise to approximately 6% in 2024, with a projected increase to 10% this year, leading the domestic market to exceed 10 billion yuan.
Divided by application scenarios, the overall overseas commercial and industrial energy storage market in 2024 is expected to be broad and decentralized. The deployment of projects is primarily focused on four main application scenarios: direct commercial user storage, integrated solar storage or solar storage charging, microgrids combined with energy storage, and new application scenarios (data centers, 5G base stations, heavy-duty battery swapping, and shore power for ports).
