Energy storage expansion will become a global trend, with China's exports surging by 220%.

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As the world accelerates its transition to clean energy, battery storage is rapidly rising from a marginal role to a core track in the energy market.

Latest data shows that Chinese energy storage companies are expanding overseas at a rapid pace. According to statistics from the China Energy Storage Alliance, in the first half of 2025, overseas energy storage orders obtained by Chinese companies totaled 186 GWh, a year-on-year surge of more than 220%. This growth highlights the importance of Chinese manufacturers in the global supply chain.

Despite tariff barriers in some markets, Chinese companies are actively exploring new markets. Data shows that orders from the Middle East, Europe, and Australia account for nearly 60% of the total. To manage risks, Chinese companies are adjusting their global strategy by localizing production in regions such as Southeast Asia.

At the same time, energy storage deployment is accelerating worldwide. Energy research and consulting firm Wood Mackenzie predicts that by 2034, global investment in battery storage will reach about USD 1.2 trillion to support over 5,900 GW of new wind and solar installations. The report emphasizes that advanced grid-scale battery technology is crucial to maintaining grid stability with a high penetration of renewable energy.

Chinese Companies Driven by Both Overseas Expansion and Domestic Market

While seeking overseas markets, Chinese companies are also benefiting from policy support at home. According to reports, China's National Energy Administration recently announced a plan to mobilize 250 billion RMB in new investments, aiming to build 180 GW of new energy storage capacity by 2027.

Strong market fundamentals are directly reflected in company performance. In the first half of 2025, 47 out of 55 listed Chinese energy storage companies achieved profitability.

Contemporary Amperex Technology Co. Limited (CATL), one of the world's largest lithium-ion battery manufacturers, disclosed in its half-year report that its operating income increased by 7.3% year-on-year to 178.886 billion RMB in the first half, while net profit surged by 33.33% to 30.485 billion RMB. The company stated that the rapid growth in demand for energy storage batteries driven by the global clean energy transition is a key factor behind its performance.

Gao Jifan, chairman of Trina Solar, said: "There used to be a saying in the industry: either go overseas or exit the market. Due to tariffs, exporting alone is not enough—you must also achieve localized production overseas."

Explosive Growth in the U.S. Market

After years of playing a marginal role in the U.S. power system, battery storage is now entering a boom period.

According to energy data portal Cleanview, thanks to a roughly 40% drop in battery prices since 2022, utility-scale battery storage capacity in the U.S. has achieved a stunning 15-fold increase since 2020, now approaching 30,000 MW.

Currently, 19 U.S. states have installed 100 MW or more of utility-scale battery storage. California leads by a wide margin with about 13,000 MW of installed capacity, accounting for about 42% of the national total. This enables the state to rely heavily on batteries during peak electricity demand periods.

Cost Advantage Highlights, Storage Becomes More Competitive Than Traditional Energy

The rapid drop in costs is a core reason behind the surge in storage deployment. According to financial advisory firm Lazard, the levelized cost of electricity (LCOE) for utility-scale solar farms combined with battery storage ranges from USD 50 to 131 per MWh.

This makes the "solar + storage" combination economically competitive with new natural gas peaker plants (LCOE at USD 47-170/MWh) and even new coal-fired power plants (LCOE at USD 114/MWh).

Lazard points out in its "2025 LCOE+" report that newly built renewable energy plants, even without subsidies, have become the most cost-competitive form of power generation. This is especially important at a time when electricity demand is growing unprecedentedly due to AI and clean energy manufacturing. In addition, compared with building new gas plants, "solar + storage" projects are generally deployed more quickly, making them an agile option to meet fast-growing demand.

Risk Warning and DisclaimerThe market has risks, and investment should be cautious. This article does not constitute personal investment advice, nor does it take into account individual users' specific investment objectives, financial situations, or needs. Users should consider whether any opinions, views, or conclusions in this article are suitable for their particular circumstances. Investment decisions based on this are at your own risk. ```