The energy storage market is becoming increasingly competitive, prompting small and medium-sized equipment manufacturers to seek new strategies to navigate this challenging environment. Over the past three years, the industry has shifted dramatically from making profits to incurring losses while striving to maintain sales. Issues of oversupply and plummeting prices have intensified competition, with leading companies aggressively capturing market share. As a result, the Matthew Effect has intensified, leading to a period of industry consolidation and the onset of a new storm.
Despite the reshuffling, many companies remain undeterred. Some are willing to sell at a loss to retain orders, which only exacerbates their financial challenges. Meanwhile, the number of energy storage companies continues to surge, with many failing to survive the tumultuous market.
From March 20 to 22, the 2025 International Energy Storage Conference and Smart Energy Technology Exhibition was held at the Nanjing International Expo Center, organized by the Jiangsu Province Energy Storage Industry Association. Hundreds of companies, including BYD (SZ:002594) and SangNeng Electric (SZ:300827), participated in the event. During the exhibition, Huaxia Energy Network engaged with various companies and witnessed firsthand the intense impact of competition on the energy storage sector, as well as proactive measures being implemented by many businesses.
While companies expressed their frustrations, they have already begun to devise strategies to cope with the increasingly difficult landscape. Some are developing “killer” products, while others seek to differentiate themselves in the marketplace.
One representative from an energy storage equipment firm stated, “Industry competition fosters vitality; without it, the sector risks stagnation. Only through competition can we eliminate underperforming players.”
In interviews with six companies—Qingqi New Energy, Chinese Academy of Sciences Haiao, Xinneng An, Platant New Energy, Gulf Company, and Kaiwo Group—Huaxia Energy Network gained insight into how small and medium enterprises are seeking breakthroughs in this competitive environment.
Company Perspectives on Market Competition
Falling prices driven by intense competition have left many companies feeling the pressure. Ying Huping, chairman of Platant, reflected on the industry’s rapid evolution: “In 2023, we believed the energy storage market was booming, with prices at around 1.2 yuan per watt-hour. Now, they’ve dropped to about 0.6 yuan.” Platant entered the energy storage sector in August 2023, only to quickly realize the harsh realities of competition. However, Ying views this as an opportunity for long-term growth rather than a setback.
Similarly, Zhang Fei, the R&D manager at Qingqi New Energy, highlighted the challenges posed by internal competition. “If we exclude costs for distribution facilities and civil works, the cost of energy storage devices is now under 0.4 yuan per watt-hour, down from over 1 yuan three years ago. This intense competition has led to a decline in product quality, as companies sacrifice reliability for lower prices.”
Liu Yahui, marketing director at Xinneng An, expressed concern over the industry’s trajectory. “Competition should be the norm; supply struggles are temporary. If there’s no competition, the industry will lose its vitality.” He cited the view of Li Zhengguo, president of LONGi Green Energy, noting that “anything humans can produce will eventually face oversupply.” Founded in 2021, Xinneng An focuses on lithium-ion battery technology innovation and has achieved global leadership in various high-value battery solutions in a short span.
Despite the challenges, Xinneng An aims to maintain high standards of safety and reliability. Liu warned, “If the focus remains solely on price, the cumulative risks associated with safety and reliability will escalate, leading to frequent failures and potentially serious accidents.” He emphasized that the real value lies in enhancing customer experience, which requires ongoing iterations of products to meet evolving needs.
Seeking Differentiation in a Homogeneous Market
As competition continues to escalate, companies are exploring ways to differentiate themselves. Ying emphasized the importance of focusing on high quality, value, and returns. Platant has adopted a strategy of “high quality, high value, high returns,” investing heavily in R&D to optimize products and maintain a rapid iteration cycle.
At the exhibition, Platant showcased a range of energy storage products, including a 128kWh wind-cooled photovoltaic storage unit and a 261kWh liquid-cooled storage cabinet. Ying noted, “Our diversified product offerings are not only for business development but also to create differentiation in a crowded market.”
Qingqi New Energy is also optimistic about the future of immersion cooling technology, which offers advantages in safety and efficiency. The company plans to launch a 5MWh immersion storage system, which will be the first containerized product of its kind in the industry. Zhang stated, “Immersion technology presents a significant technical advantage, and once costs are controlled, it will rapidly capture market share.”
Holistic Solutions to Meet Diverse Customer Needs
Each company is pursuing its unique path towards differentiation. Xinneng An has introduced a groundbreaking energy storage product featuring a self-developed battery with a cycle life of 15,000 cycles, which is significantly higher than the 8,000 cycles typical of mainstream products. Liu emphasized, “This is not just talk; it can be documented in agreements.” He believes future competition will revolve around who can continually empower customers’ energy assets.
On the other hand, Chinese Academy of Sciences Haiao is exploring a comprehensive energy management approach, integrating various services such as photovoltaic, energy storage, and charging. Ye Youpu, the operations director at Haiao, explained that the company aims to create a smart, green, efficient, and safe energy management platform to address supply and demand across various sectors.
In this highly competitive landscape, the Kaiwo Group’s energy division has developed a comprehensive energy ecosystem that combines photovoltaic, energy storage, charging, and power battery systems. Sun Jian, chairman of the energy center at Kaiwo Group, noted that their energy storage products have been widely adopted across various industries, particularly in logistics parks, where investment returns can be realized within three years.
Emphasizing Safety in a Competitive Market
While competition continues to intensify, all interviewed companies agree on one fundamental principle: safety must always come first in energy storage products. Performance, price, and value are secondary to safety. Liu drew an analogy to photovoltaic systems, noting that while they stabilize over time, energy storage systems face increasing complexity and risks as they age.
Gulf Safety Technology Company, the only interviewed company focused exclusively on safety, has developed a comprehensive line of fire detection and firefighting solutions tailored to the energy storage industry. Ma Hexin, head of the technical center, explained that the company’s products are designed to perform under various environmental conditions that energy storage systems encounter.
Looking ahead, Gulf Safety aims to promote industry standards and technological guidelines to facilitate product standardization and industry development. Ma expressed hope for improved interface standardization, enhanced battery safety, and the exploration of more effective detection and control methods to prevent incidents.
Ultimately, Gulf Safety is committed to developing smart firefighting products that digitize safety measures in the energy storage industry, enabling enterprises to achieve safer operations through digital upgrades.
