In 2025, the energy storage industry is undergoing a profound transformation, akin to a seismic shift. Following the release of the “Document No. 136,” which opened the market for new energy and eliminated the mandatory energy storage allocation system, the General Office of the Central Committee of the Communist Party and the State Council issued new opinions on improving the pricing governance mechanism on April 2. This document emphasizes the development of energy pricing policies that promote green and low-carbon transitions and aims to establish a comprehensive pricing mechanism for regulatory resources like natural gas power generation and energy storage, thereby enhancing their supporting role in building a new type of power system.
This new policy is another significant measure following Document No. 136 and is expected to further propel energy storage into a trading era. This indicates that energy storage will transition into a state of high-frequency utilization, moving away from being merely a “decorative” installation that is built but not used. Insights from international examples suggest that the core of high-frequency utilization lies in guaranteeing project returns and reconstructing the energy storage ecosystem.
Over the past decade, China’s energy supply and demand landscape has undergone significant changes, shifting from a relatively loose state to a near balance. The structure of power generation has also experienced major shifts, with the share of coal-fired power generation capacity declining from approximately 66% in 2015 to about 43% by 2024, while the total installed capacity of new energy sources is set to reach parity with coal power.
As the industry focuses on a competition for “larger and more efficient” capacities, recent annual reports from leading companies such as CATL, Huawei, and BYD reveal that while industry leaders are expanding their share of the energy storage market, they are also preparing for a fundamental transformation centered on technological paradigm shifts. This could lead to a fracturing of energy storage application scenarios and a disruption of existing business models.
In 2024, CATL’s revenue from energy storage batteries reached 57.29 billion yuan, accounting for 15.8% of its total revenue. Although BYD has not disclosed its energy storage performance separately, it still shows substantial contributions. BYD’s income from automotive and related products reached approximately 617.38 billion yuan, representing 79.45% of its total revenue, with solar energy and energy storage included under this category.
Following CATL and BYD, Huawei also reported impressive results in the energy storage sector. In 2024, the company achieved global sales of 862.1 billion yuan, with energy storage evolving in various dimensions beyond just battery cells and system capacities. Technologically, the industry is shifting from merely focusing on “how much energy to store” to “how to use energy more intelligently.” In terms of application scenarios and business models, energy storage is poised for a multi-faceted evolution.
Annual reports from CATL, BYD, and Huawei reveal a shared commitment to intensifying investment in energy storage. CATL projects that the growth rate of the energy storage market will outpace that of power batteries over the next 3 to 5 years, potentially reaching an increase of 25% to 30%. Beyond energy cells, CATL is ambitious in system integration, launching the world’s first energy storage system with zero power and capacity degradation over five years, achieving a single box energy capacity of 6.25 MWh, along with the UniC series targeting commercial and industrial energy storage.
In the energy storage field, BYD is developing a new generation of energy systems that boast high energy density, safety, longevity, and low costs, aiming to capture the largest market share globally. Utilizing blade battery and CTS patented technology, BYD’s system capacity density has improved by 18% over the previous generation, with a single box capacity reaching 6.432 MWh. Coupled with their new intelligent battery management system, BYD has made significant advancements in user-friendly features like one-button startup and smart temperature control technology.
Huawei, known for its photovoltaic inverters, has shifted focus in its 2024 report, placing greater emphasis on its “grid-type energy storage” solutions, reflecting a strategic transition from photovoltaics to energy storage. The ambitions of leading companies like CATL, BYD, and Huawei in the energy storage sector are evident, indicating a competitive landscape.
Transformations in Energy Storage
From a technological standpoint, lithium battery storage is set to make breakthroughs in long-duration and safety aspects, while the application scenarios and business models are undergoing significant changes. The National Development and Reform Commission’s “Action Plan for Accelerating the Construction of a New Power System (2024-2027)” identifies long-duration energy storage as a “critical supporting technology,” providing revenue guarantees through capacity pricing mechanisms. By 2025, projects with over 4 hours of storage are expected to see a significant increase in bids.
In March 2023, Quinbrook Infrastructure Partners announced a collaboration with CATL to develop an 8-hour long-duration energy storage system called EnerQB, which is claimed to be the world’s first true 8-hour battery storage system. It plans to deploy over 3GW of storage capacity across multiple sites in Australia, aiming to serve existing partners as well as emerging commercial and industrial clients. The introduction of this product will elevate energy density by 80% through innovative underlying architecture and usher in a new era for renewable energy consumption and grid upgrades.
EnerQB achieves a 25% reduction in cost per kilowatt-hour compared to traditional lithium long-duration systems while integrating real-time optimization of grid carbon intensity and revenue through Quinbrook’s Quintrace platform. The development of EnerQB not only redefines the technical boundaries of lithium storage but also reshapes the foundational logic of global energy transition.
Additionally, safety standards in energy storage are under scrutiny, particularly after the explosion at the Moss Landing storage facility in California in March 2025, which raised significant concerns about the risks associated with large-scale installations. This incident resulted in direct economic losses exceeding $1 billion and highlighted the critical flaws of conventional liquid lithium batteries.
Companies such as Sungrow, BYD, Huawei, Trina, and Ruipu LanJun are now striving to reshape industry safety standards through real machine combustion testing. For instance, Sungrow has invested 30 million yuan to conduct open environment combustion tests on its 20MWh PowerTitan 2.0 system, achieving impressive results without fire spread under extreme conditions.
Moreover, CATL and BYD are intensifying their investments in solid-state batteries, hoping to accelerate the development of safer battery technologies. The Ministry of Industry and Information Technology has listed solid-state batteries as a key breakthrough direction, with cities like Beijing and Shanghai offering 30% investment subsidies for demonstration projects. In the capital market, financing in the solid-state battery sector exceeded 20 billion yuan in 2024, with CATL and BYD exploring “lithium-sodium hybrid” solutions during the transitional technology phase.
Huawei Digital Energy has introduced intelligent grid-type storage solutions, facilitating a transition from merely supporting the grid to enhancing its capabilities. With new energy installations surpassing 40%, challenges such as grid inertia loss and voltage fluctuations have intensified. In this context, grid-type energy storage has evolved from a “cutting-edge technology” to a “strategic necessity,” with leading companies like Sungrow, Huawei, XJ Electric, and Nari Group announcing significant technological advancements.
The core of grid-type energy storage lies in simulating synchronous generator characteristics through power electronic devices, enabling voltage source control. Huawei’s “multi-site self-synchronization modulation technology” can enhance reactive response speed to the millisecond level, supporting stable operation of gigawatt-level microgrid systems. Sungrow’s PowerTitan 2.0 system has undergone comprehensive testing to validate its black start capability under extreme conditions.
The “New Energy Storage High-Quality Development Action Plan” from the National Energy Administration has identified grid technology as a key area for research and development, with financial support for demonstration projects in Beijing and Guangdong. As grid-type storage transitions from “optional” to “essential,” its significance surpasses mere technical improvements—representing a paradigm shift in the power system from “source-following-load” to “source-grid-load-storage” collaboration.
According to GGII, global installations of grid-type energy storage systems are projected to exceed 200 GW by 2030, with a market penetration rate in China exceeding 40%.
In the era of AI, energy storage is also experiencing a transformation in its value chain. AI is a wave that no company can afford to miss, and Huawei is capitalizing on this opportunity through initiatives aimed at securing long-term success in the computing power era. Among these is the “Earth Water Plan,” targeting the flow of fixed networks in data centers, campuses, and households. The explosive demand for AI computing power is driving up electricity consumption in data centers, prompting Huawei to propose a “computing power-energy synergy” model to address power supply challenges.
Annual reports highlight that electricity consumption in data centers accounts for over 80% of the ICT industry, and Huawei aims to reduce energy use while enhancing efficiency through simplified architectures and high-density deployments. BYD is also heavily investing in AI data centers, creating a comprehensive product lineup that includes AI servers, liquid cooling systems, and power management technologies, opening vast growth opportunities.
Additionally, CATL has identified significant demand for storage in data centers in Australia and the Middle East, where the high power consumption necessitates stringent quality requirements for energy storage batteries, presenting a promising growth market. The current trend indicates that the demand for storage in data centers is increasing, with projects like the Alian Project reaching a scale of 19 GWh, marking just the beginning.
AI technology facilitates real-time monitoring of battery health (SOH), predicting thermal runaway risks, and optimizing operations and maintenance. For example, Sungrow’s PowerTitan 2.0 employs full liquid cooling and AI biomimetic thermal balance technology, enabling rapid cooling and maintaining battery temperatures around 25°C, resulting in an 8% increase in discharge capacity.
Through the integration of battery swapping, energy storage, and renewable energy, CATL is leveraging its “Chocolate Battery Swapping” ecosystem to create a more efficient “solar-storage-charging” energy network. The expansion into B2G technology marks a crucial step in CATL’s transformation from a battery manufacturer to an energy service provider. This shift reflects a broader ambition—developing a “zero-carbon grid,” capable of powering large data centers or even entire cities. According to company forecasts, the revenue generated from developing and managing “zero-carbon grid” operations could exceed ten times that of supplying electric vehicle batteries.
As CATL anticipates revenue of 253 billion yuan from its power battery systems in 2024, this new business could potentially surpass 2.5 trillion yuan. The “zero-carbon grid” is envisioned not just as a storage system but as a comprehensive energy solution integrating solar, wind, storage, and vehicle-to-grid technologies.
Huawei’s annual report frequently references its “solar-storage-charging” strategy, which aims to integrate photovoltaics, energy storage, and charging facilities, creating a closed-loop energy ecosystem. For example, its smart photovoltaic solutions achieved a shipment volume of 176 GW in 2024, with energy storage shipments increasing by 66%. Through initiatives like “Spark and Spread,” Huawei collaborates with partners to promote high-quality industry development.
In the next three years, Huawei plans to deeply integrate its “Earth Water Plan” and “Sky Water Plan” with grid, vehicle, and data center clients, building a cohesive ecosystem of “energy storage + computing power + transportation.” On March 17, BYD introduced its megawatt fast-charging technology, which can deliver a peak charging power of 1 MW (1000 kW) within five minutes, providing a range of 400 km.
BYD has developed a “1 host + 1 storage cabinet” charging system, with a storage cabinet capacity of 225 kWh and a maximum output power of 800 kW. When the storage cabinet collaborates with the grid, the total output power can reach 1360 kW, allowing for peak charging power of 1000 kW during single-gun charging and a total of 1360 kW during double-gun charging. This charging model is set to evolve further, exploring new development forms by 2025.
As stated by Gao Jifan, Chairman of Trina Solar, achieving carbon neutrality hinges on three key factors: first, continuous technological innovation to improve solar conversion efficiency and reduce costs; second, significant development of energy storage systems, including new technologies and applications for lithium and sodium batteries; and third, advancing high-voltage and transmission technologies, especially direct current distribution systems, to establish a new zero-carbon low-carbon energy framework.
The most critical aspect involves combining carbon-free power energy with further electrification of end-use energy, such as building zero-carbon buildings, factories, mining operations, and transportation. From discussions on storage safety to AI-driven operational revolutions, and the deep coupling of long-duration storage with new power systems, 2025 may mark a historical turning point for energy storage, transitioning from “scale expansion” to “value creation.” This technological transformation could reshape the industry landscape for the next decade.
