Energy Storage in the New Era: China’s share of global energy storage battery shipments exceeds 93%. What challenges does it face as it accelerates its international expansion?
Energy storage technology is a crucial support 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; however, to further advance, it must overcome multiple challenges including technological breakthroughs, cost optimization, and innovation in business models.
On March 20, the third International Energy Storage Conference and Exhibition (CESC2025) commenced in Nanjing. The event featured a summit forum, exhibitions, and several parallel activities focusing on themes such as the new energy shipping industry, hydrogen energy, and the role of powder coating in supporting the safe, efficient, and green development of the energy storage sector. Experts, scholars, and representatives from various enterprises and financial institutions gathered to discuss these topics.
During a roundtable dialogue themed “Diverse Collaboration to Build an Energy Storage Ecosystem, Support Carbon Neutrality Goals, and Drive a Green Future,” hosted by Professor Wu Yuping from Southeast University, participants included 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, Lian Zhanwei, General Manager of Xinyuan Zhichu Energy Development (Beijing) Co., Ltd., and Wang Hongwei, General Manager of Lixinghang Energy.
In 2024, global energy storage battery shipments are projected to reach 369.8 GWh, marking a year-on-year increase of 64.9%. Chinese enterprises accounted for 345.8 GWh of this total, representing over 93% of global shipments. Wang Hongwei emphasized that energy storage is a vital component of microgrid systems, and for China’s energy storage technology and solutions to expand globally, several issues need to be addressed, such as understanding their own positioning and that of their clients, enhancing the safety and performance of energy storage products, and personalizing solutions.
The increasing share of renewable energy generation has led to widespread application of energy storage technology in power systems. In operational terms, energy storage is primarily applied in three scenarios: power generation, the grid, and user sides. The commercial energy storage sector has seen rapid growth in recent years, and it is anticipated that by 2025, the global growth rate for new commercial energy storage installations will surpass the overall average growth rate for energy storage, with the domestic market expected to exceed 10 billion yuan.
Chinese energy storage companies are accelerating their global expansion as the energy sector undergoes rapid transformation. With continuously maturing energy storage technologies, the energy storage cell market is expected to maintain high growth rates. InfoLink predicts that global energy storage cell shipments will reach 392 GWh by 2025, representing a 25% year-on-year increase.
According to data from the National Energy Administration, by the end of 2024, the total installed capacity of new energy storage projects in China will reach 73.76 million kW (168 million kWh), which is approximately 20 times the installed capacity at the end of the 13th Five-Year Plan, reflecting an increase of over 130% from the end of 2023. The average energy storage duration is 2.3 hours, up by about 0.2 hours from the end of 2023.
Chinese energy storage companies are demonstrating strong competitiveness in international markets. A white paper released by EVTank and the China Battery Industry Research Institute highlights that in 2024, global energy storage battery shipments will reach 369.8 GWh, with a year-on-year growth rate of 64.9%. Chinese companies contributed 345.8 GWh, accounting for 93.5% of global shipments, an increase of 2.6 percentage points from the previous year. The overseas market is seeing rapid growth, with significant increases in energy storage tenders and installations in regions like Europe, the Middle East, and Asia-Pacific.
According to statistics from Gao Gong Industry Research Institute, in 2024, China’s orders for lithium battery energy storage exports exceeded 120 GWh, primarily to regions including Europe, Southeast Asia, the Middle East, and the United States, with demand from European and American owners accounting for 73% of the total.
Wang Hongwei reiterated the critical importance of energy storage in microgrid systems. Lixinghang Energy specializes in developing distributed energy and microgrid systems, with products that include photovoltaic systems, energy storage, gas turbine power generation, and energy management platforms. He noted that for China’s energy storage technologies and solutions to gain a foothold in the global market, attention must be paid to several areas, such as understanding their own and client positioning, and enhancing product safety and performance.
Many Chinese energy enterprises are accelerating their international expansion, with Australia being a key destination. There exists a solid cooperative foundation and significant complementary advantages between China and Australia in the field of new energy. Australia boasts rich wind and solar resources, with photovoltaic and wind energy accounting for around 65% of total electricity generation by the end of 2022. China has significant technical advantages and extensive construction experience in wind power, photovoltaic power generation, and energy storage technology. In recent years, numerous Chinese companies have actively participated in the development of new energy projects in Australia, deepening cooperation in the sector.
Liu Xiaoyan emphasized that new energy will be a focal point for future cooperation between China and Australia, with potential collaboration in various areas. “Australia has abundant renewable energy resources and significant tidal energy potential, which holds great development value,” she stated, encouraging domestic enterprises to invest and establish factories in Australia. Chinese companies can also explore local applications for electric vehicles and energy storage.
Energy storage is widely applicable compared to traditional thermal power generation, offering benefits such as being green, clean, and low-carbon. However, some clean energy technologies face volatility and intermittency issues in practical applications, making it challenging to ensure overall stability within the grid system. Effectively utilizing energy storage technology can help prevent these issues and enhance safety during the integration of renewable energy into the grid.
For instance, in Xinjiang, the climate exhibits characteristics such as “extreme heat with no wind, extreme cold with no wind, extreme cold with limited sunlight, and nighttime peaks with no sunlight,” leading to a seasonal energy output pattern that poses challenges for power supply reliability. The development of new energy storage in Xinjiang is characterized by scale, market-oriented approaches, and diversification, which aligns well with the region’s new power system development needs. Data from State Grid Xinjiang Electric Power Company shows that by the end of February this year, Xinjiang had established over 200 new energy storage stations with a total installed capacity of 9.777 million kW (32.663 million kWh), effectively promoting the absorption of renewable energy.
In 2024, Xinjiang’s new energy storage systems are expected to charge 4.48 billion kWh, effectively increasing the utilization rate of renewable energy by 3.6%. Liu Daqian introduced that “the application of energy storage technology in power systems is widespread, and as the penetration rate of new energy continues to increase, the inherent volatility that cannot be adjusted necessitates a more significant role for energy storage in practice. Energy storage is primarily applied in three scenarios: the power generation side, the grid side, and the user side.”
Lian Zhanwei explained that “the design and integration of energy storage systems on the generation side, grid side, and user side share common characteristics.” The generation side primarily addresses issues related to integrating renewable energy into the grid, while energy storage on the grid side currently focuses on peak regulation, frequency modulation, and providing support for power and voltage. The user side mainly involves commercial energy storage, which is relatively scarce in domestic applications.
Xinyuan Zhichu is a subsidiary of China Power Investment Corporation and specializes in the research and development of main energy system technologies and system integration. Established in 2021, it ranked among the top three in national shipments by 2023. The company’s products focus on the generation side, grid side, key components of energy storage systems, as well as commercial energy storage and energy storage stations. Their product, the integrated commercial energy storage unit, was launched in collaboration with the Ministry of Emergency Management to address safety concerns associated with energy storage.
In 2023, commercial energy storage constituted approximately 3% of China’s newly installed energy storage capacity, rising to about 6% in 2024, with expectations to increase to 10% this year, and the domestic market scale is projected to exceed 10 billion yuan.
In terms of application scenarios, the overall overseas commercial energy storage market in 2024 is expected to be broad and fragmented. The main application scenarios include direct energy storage for commercial users, integrated photovoltaic and energy storage systems, microgrid plus energy storage, and new application scenarios such as data centers, 5G base stations, battery swap heavy trucks, and port shore power.
