BEIJING: China’s revamp of its electricity market, coupled with surging global demand from data centres, is fueling a boom for the country’s energy storage manufacturers, which already dominate the global market.
Chinese firms are projected to increase global shipments of lithium-ion battery cells for energy storage by 75% this year, exporting over $65 billion in storage and EV batteries. The surge is driven by domestic renewable energy and data centre demand, supportive government reforms, and international opportunities, including Europe’s aging grids and Middle East renewables.
All six of the world’s top energy storage cell suppliers—CATL, HiTHIUM, EVE Energy, BYD, CALB, and REPT BATTERO—are Chinese, highlighting the country’s global dominance. EVE Energy reported a 35.5% rise in energy storage sales in the first three quarters, while REPT BATTERO posted record shipments. Analysts note storage revenue is increasingly significant alongside EV battery sales.
Reforms in China’s electricity market, introduced in June, now require new projects to sell power through market-based auctions instead of fixed rates, improving profitability for storage plants that recharge at low prices and discharge when prices rise. This change has increased average daily operation hours for energy storage facilities to 3.08 hours, up from 2.3 hours a year earlier.
Government initiatives, including a $35 billion plan to nearly double battery storage capacity by 2027 and provincial-level capacity tariffs, have further accelerated the market. Analysts describe the policy shift as the most decisive for energy storage in over a decade.
China already operates the world’s largest battery energy storage fleet, accounting for roughly 40% of global capacity. The sector’s growth is expected to continue, with global energy storage cell shipments projected to reach 800 GWh next year—a 33–43% increase over current forecasts—cementing China’s central role in the transition to renewable energy and power reliability for AI-driven data centres worldwide.
Story by Reuters
