Outlook for 2026: China’s Energy Storage Battery Industry Landscape

(Market Status, Industry Chain Analysis, and Future Development Trends)

Key Data Covered

This report highlights key industry indicators, including:

• Energy storage battery shipment volume

• Market size of the energy storage battery industry

• Energy storage battery product pricing trends

Industry Overview

1. Definition of Energy Storage Batteries

Energy storage batteries are battery systems used in energy storage applications. They are devices that convert chemical energy into electrical energy and primarily include lithium-ion batteries, lead-acid batteries, and flow batteries.

Compared with mechanical energy storage and other chemical energy storage technologies, energy storage batteries offer advantages in scalability, service life, flexibility, and deployment efficiency.

In general, energy storage batteries refer to complete battery systems, including battery packs assembled with battery cells, battery management systems (BMS), and other components. However, based on the products offered by major industry players and current market practices, battery cells, battery modules, and battery packs are all considered part of the energy storage battery product category.

Industry Chain Analysis: Midstream Manufacturing as the Core Segment, Downstream Applications Cover Diverse Energy Scenarios

The energy storage battery industry chain can be divided into three major segments:

1. Upstream: Raw materials and manufacturing equipment

2. Midstream: Battery manufacturing, system integration, and installation

3. Downstream: Energy storage applications and operation & maintenance services

The upstream segment mainly consists of battery raw materials and production equipment. Battery materials include cathode materials, anode materials, electrolytes, separators, and other supporting materials.

The midstream segment includes energy storage battery systems, power conversion systems (PCS), energy management systems (EMS), and energy storage system integration and installation. Energy storage battery systems mainly consist of battery cells, battery management systems (BMS), and battery packs.

The downstream segment focuses on operation and maintenance services across different application scenarios. Energy storage systems can be deployed on the power generation side, grid side, and user side to provide services such as peak shaving, frequency regulation, reduction of renewable energy curtailment, grid congestion relief, electricity price arbitrage, and capacity cost management.

Additional applications include backup power solutions for communication base stations, data centers, and other critical infrastructure.

Representative Companies Across the Industry Chain

At the upstream level, major companies involved in battery materials include:
GEM Co., Ltd., BTR New Material Group Co., Ltd., Shenzhen Dynanonic Co., Ltd., Guizhou Anda Energy Technology Co., Ltd., Tinci Materials Technology Co., Ltd., Shanghai Putailai New Energy Technology Co., Ltd., and Shanghai Energy New Materials Technology Co., Ltd..

Key battery manufacturing equipment suppliers include:
Hangke Technology Co., Ltd., Lead Intelligent Equipment Co., Ltd., NAURA Technology Group Co., Ltd., and Yinghe Technology Co., Ltd..

In the midstream segment, representative battery manufacturers include:
CATL, BYD Company Limited, Gotion High-tech Co., Ltd., and HaiJi New Energy.

Battery management system (BMS) manufacturers include:
Kogener Electronic, Gaote Electronics, and Gaotai Haoneng.

Power conversion system (PCS) manufacturers include:
Sunshine Power Supply, Kehua Data Co., Ltd., and NARI Technology.

Energy management system (EMS) providers include:
NARI Technology Co., Ltd., Zhongtian Technology Co., Ltd., and Pinggao Electric Co., Ltd..

Energy storage system integrators include:
5D TECH Energy, Narada Power Source Co., Ltd., and Electric Guoxuan.

Energy storage installation companies include:
Yongfu Power Engineering Co., Ltd., TBEA Co., Ltd., CHINT Group, PowerChina, and China Energy Engineering Corporation.

Major downstream application companies include:
State Energy Investment Corporation, SDIC Power Holdings, China Huaneng Group, and China National Nuclear Corporation.

Industry Development Status

1. China’s Energy Storage Battery Shipments Have Grown Rapidly, Strengthening Global Market Leadership

According to the China Energy Storage Lithium-ion Battery Industry Development White Paper (2026) jointly released by EVTank and the Ivey Economic Research Institute, China’s energy storage battery shipments—primarily lithium-ion energy storage batteries—experienced rapid growth between 2014 and 2025.

During this period, shipments recorded a compound annual growth rate (CAGR) of nearly 85%.

In 2025, Chinese companies shipped approximately 614.7 GWh of energy storage lithium-ion batteries, representing a 77.8% year-on-year increase compared with 2024.

China’s share of the global energy storage battery market has also continued to rise. By 2025, Chinese companies accounted for approximately 94.4% of global energy storage battery shipments, demonstrating China’s dominant position in the global supply chain.

2. Energy Storage Lithium-ion Battery Prices Continue to Decline

Driven by the maturation of the electrochemical energy storage industry, economies of scale, and technological improvements, the costs of battery systems and related equipment have continued to decrease.

Energy storage battery prices are also affected by market demand and fluctuations in raw material costs. Overall, prices have shown a downward trend with periodic fluctuations.

According to data from the prospectus of Yuanxin Energy Storage, the average price of China’s energy storage lithium-ion batteries increased from RMB 0.52/Wh in 2020 to a peak of RMB 0.85/Wh in 2022.

Since 2023, prices have declined steadily, falling significantly to RMB 0.36/Wh in 2024 and further slightly decreasing to RMB 0.33/Wh in 2025.

As cost reduction becomes the primary industry focus, battery prices are gradually approaching a more stable level, with annual price declines narrowing.

Market Size Outlook for China’s Energy Storage Battery Industry

China’s energy storage battery market is transitioning from a policy-driven rapid expansion phase into a new cycle of value-driven, large-scale growth.

Historical installation data demonstrates strong momentum. China’s annual newly installed capacity of new energy storage systems increased from 2.4 GW in 2021 to 42.37 GW in 2024. During the first 11 months of 2025, newly installed capacity remained high at 40.09 GW, reflecting strong market resilience.

Meanwhile, the Special Action Plan for Large-scale Development of New Energy Storage (2025–2027) issued by relevant government authorities sets a target of achieving more than 180 GW of installed new energy storage capacity by 2027.

This indicates that the industry still needs to add more than 65 GW of cumulative capacity within the next two years, creating significant growth opportunities.

The large-scale commercialization of 500Ah+ high-capacity battery cells, breakthroughs in long-duration energy storage technologies, and continued reductions in levelized storage costs will further accelerate market development.

In addition, growing demand for highly reliable energy storage systems from artificial intelligence data centers, combined with the global transition toward renewable energy, is expected to create sustained market expansion.

China’s energy storage battery market is projected to exceed RMB 600 billion by 2031, with a five-year compound annual growth rate (CAGR) of approximately 24.5%.