The energy storage industry is experiencing intense competition, prompting small and medium-sized equipment manufacturers to seek new strategies for survival. Over the past three years, the industry has shifted from easy profits to losses disguised as sales. The market is currently plagued by overcapacity and plummeting prices, with leading companies fiercely vying for market share. This has exacerbated the Matthew effect, leading the industry into a period of consolidation where a new storm is brewing.
Despite the ongoing turmoil, many businesses remain steadfast. Some companies prefer to sell at a loss rather than lose orders, which only exacerbates their financial bleeding. At the same time, a significant number of players are blindly entering the market, resulting in a surge in energy storage enterprises, while many others are failing.
From March 20 to 22, the CESC2025, the third International Energy Storage Conference and Smart Energy Storage Technology and Application Exhibition, was held at the Nanjing International Expo Center, organized by the Jiangsu Energy Storage Industry Association. Hundreds of companies, including BYD and ShangNeng Electric, participated in this event. During the exhibition, we at Huaxia Energy Network felt the severe impact of competition on energy storage companies, but we also observed many proactive measures being taken. Although companies are expressing their grievances, they have begun to devise strategies, whether by secretly developing “killer” products or seeking differentiation to prepare for an increasingly challenging future.
One company representative noted, “An industry that is competitive is vibrant; otherwise, it stagnates. An industry that doesn’t embrace competition will decline. Only through competition can we eliminate the underperformers.” Huaxia Energy Network conducted interviews with six companies, including Tongqi New Energy, Zhongke Haiao, Xineng An, Bolante New Energy, Gulf Company, and Kaiwo Group, to closely observe how small and medium enterprises are finding breakthroughs amidst this competitive landscape.
Attitudes of Companies Amidst Intense Competition
Falling prices resulting from intense competition have made it clear to companies involved just how challenging the environment has become. “2023 was heralded as the ‘Year of Commercial Energy Storage.’ At that time, we believed the industry was very promising, so we decided to enter,” recalled Ying Huping, Chairman of Bolante. He noted that the price per watt-hour for storage products was over 1.2 yuan three years ago, but it has now dropped to around 0.6 yuan.
In August 2023, Bolante officially entered the energy storage sector, becoming part of the growing field. As a newcomer, Ying Huping quickly recognized the harsh realities of competition but does not view it negatively. “The new energy sector is rapidly growing and is a critical support for achieving ‘dual carbon’ goals. This is a long-term journey, and Bolante is not just looking to make a quick buck,” he stated. With a long-term perspective, Bolante is willing to invest significantly in early research and development.
Xineng An’s Market Director, Liu Yahui, echoed this sentiment, noting that the competition has led to a dramatic decline in product quality. “To lower prices, quality must inevitably be sacrificed, which is a regrettable reality in the energy storage industry.” He pointed out that the industry should embrace competition as a norm, and that short-term shortages should not deter the healthy development of the sector.
Finding Differentiation in a Competitive Market
In light of unavoidable competition, how should manufacturers respond? Ying Huping believes that commercial energy storage lacks profitability, stating, “Many companies will exit the market this year.” Therefore, Bolante is promoting a mantra of “high quality, high value, high returns.” He emphasizes the importance of focusing on R&D, continuously optimizing products, and maintaining a six-month iteration cycle while finding ways to reduce costs.
During discussions with the Huaxia Energy Network, Ying Huping consistently emphasized the importance of R&D. From the inception of the company, he has dedicated significant time to recruiting R&D personnel, interviewing over 1,000 candidates. At the recent exhibition, Bolante showcased a range of commercial energy storage products, including 128 kWh air-cooled integrated solar storage units, 261 kWh liquid-cooled storage cabinets, and 418 kWh low-voltage outdoor cabinets, alongside differentiated products such as mobile charging robots and portable power stations.
As market competition intensifies, Bolante’s diverse product lineup focuses on large-scale and commercial energy storage, while also exploring mobile power stations and traditional machinery electrification. “We need to participate in market competition and inevitably follow market trends to lower product prices. Balancing price and quality is an art,” Ying Huping remarked.
In response to the heightened safety demands of clients such as State Grid and Southern Grid, Tongqi New Energy’s R&D Manager Zhang Fei emphasized the advantages of immersion cooling technology. The company is developing a 5MWh immersion energy storage system, which is set to be the first containerized immersion storage product in the industry, aiming to ensure safety and quality.
Comprehensive Solutions to Meet Diverse Client Needs
As companies seek to differentiate themselves, they are developing various solutions. Xineng An has introduced a high-performance energy storage product with a cycle life of 15,000 cycles, significantly exceeding the typical 8,000 cycles offered by competitors. “This is not just talk; it can be included in contracts,” Liu Yahui emphasized. The company aims to become a leader in medium-sized lithium batteries globally.
Meanwhile, Zhongke Haiao is exploring integrated energy management. They have developed a platform that collaborates with partners to provide comprehensive solutions that include photovoltaics, storage, and charging, addressing the full spectrum of energy management needs.
Gulf Company, which specializes in fire detection and safety solutions, has also entered the energy storage space. Their comprehensive fire safety solutions span from early detection to extinguishing systems, designed to meet the complex environmental challenges of energy storage products.
In summary, while the energy storage industry faces intense competition and challenges, companies are actively seeking differentiation through innovation, quality, and comprehensive solutions. The focus on safety remains paramount, ensuring that performance and value come second to the reliability of their products.
