Imagine a future where energy storage devices in our homes—and even entire cities' power supplies—rely on compact "energy cubes": storage batteries. This once-niche sector is now experiencing unprecedented growth, with Chinese companies rapidly expanding their global market share.
Policy Winds Ignite Market Demand
The joint release of the "Large-scale Construction Action Plan for New Energy Storage" by China's National Development and Reform Commission and National Energy Administration has dramatically accelerated market demand. The ambitious target: achieve over 180 GW of new energy storage capacity by 2027. This initiative is expected to drive approximately $350 billion in direct project investments.
This policy shift signals the beginning of a golden era for the energy storage industry, creating massive opportunities across the supply chain.
Supply Shortages: Batteries in High Demand
The policy-driven surge has led to severe shortages of storage battery cells. Major Chinese manufacturers are operating at full capacity, yet orders continue to pile up—some scheduled through early 2026. Global demand has reached unprecedented levels, with search interest for "energy storage battery" spiking dramatically in recent months.
Industry leaders like Hypontech report non-stop production lines but still struggle to meet demand for critical battery components.
Global Expansion: Chinese Companies Go Abroad
Recognizing the enormous market potential, Chinese energy storage giants—including CATL, BYD, and Eve Energy—are aggressively expanding overseas. Their production facilities are running at maximum capacity to fulfill international orders, with some order backlogs extending to 2026.
Data reveals staggering growth: Chinese companies secured 163 GWh in new overseas orders during the first half of 2025 alone—a 246% year-over-year increase. Their business now spans more than 50 countries and regions worldwide.
From Price Wars to Technology Leadership
The competitive landscape is evolving. Where price competition once dominated, technological innovation now drives success. Companies like Hypontech have developed breakthrough solutions including kilowatt-hour scale long-duration storage cells and sodium-lithium hybrid systems for AI data centers—technologies that help penetrate premium markets in Europe and North America.
Diversified Global Footprint
While maintaining strong positions in traditional European and American markets, Chinese firms are making significant inroads in emerging regions. The Middle East, Australia, and East Asia accounted for substantial portions of new orders in early 2025. Saudi Arabia's planned 24 GWh storage projects will likely make the Middle East the world's fastest-growing storage market.
A Bright Future for Global Energy Storage
Market research projects the global battery storage sector will grow from $32.63 billion in 2025 to $114.05 billion by 2032, with a 19.58% annual growth rate. This explosive expansion responds to critical needs: aging grid infrastructure in the U.S., renewable energy integration challenges in Europe, and electricity shortages across developing regions.
Storage systems have become the linchpin for addressing these diverse energy challenges, particularly as costs have plummeted 80% over three years. China, producing over 90% of portable storage units globally, holds dominant advantages across the supply chain.
Keys to China's Storage Success
Several factors explain Chinese companies' global leadership:
Policy Support: Strong government backing created favorable development conditions.
Technology Innovation: Significant R&D investments yield competitive products.
Supply Chain Advantages: Complete domestic ecosystems reduce production costs.
Market Expansion: Aggressive global strategies capture international market share.
While challenges like trade barriers and technical standards remain, continued innovation and cooperation position Chinese firms to further strengthen their global standing in this critical industry.