Recently, the new-type ESS sector has received a major boost with the release of the "Action Plan for High-Quality Development of the New-Type ESS Manufacturing Industry" by the Ministry of Industry and Information Technology (MIIT) and seven other departments. The plan proposes accelerating the iteration and upgrading of mature technologies such as lithium batteries, supporting disruptive technological innovations, and enhancing the supply capacity of high-end products. It aims to promote engineering and application technology breakthroughs for supercapacitors, lead-carbon batteries, sodium-ion batteries, and flow batteries. It also advocates for a moderately advanced layout of ultra-long-duration energy storage technologies like hydrogen storage, encourages the development of multi-type hybrid energy storage technologies based on application needs, and supports foundational research on forward-looking technologies such as new-system batteries, smart batteries, thermal and cold storage, and new physical energy storage.
Public information indicates that new-type ESS refers to energy storage technologies other than pumped hydro storage, including electrochemical storage, compressed air storage, flywheel storage, thermal storage, cold storage, and hydrogen storage technologies.
Currently, lithium batteries remain the mainstay of the new-type ESS sector. Recently, research institutions EVTank and the China Industrial Economic Research Institute, in collaboration with the China Battery Industry Research Institute, jointly released the "White Paper on the Development of the Energy Storage Battery Industry in China (2025)." According to the white paper, global ESS battery shipments in 2024 reached 369.8 GWh, up 64.9% YoY, with LFP batteries accounting for as much as 92.5% of the global ESS battery market in 2024.
Dual Heat in ESS Battery Supply and Demand, Major Projects Intensively Announced
According to incomplete statistics from Battery Network, in just over a month since the beginning of 2025, numerous announcements have been made regarding new ESS battery projects, including new signings, landings, and groundbreaking ceremonies. Among the 17 projects included in the statistics, 13 disclosed investment amounts, with a total investment exceeding 58.8 billion yuan.
Meanwhile, the diversity of ESS technology categories continues to expand. The aforementioned 17 projects cover lithium batteries, sodium-ion batteries, solid-state batteries, and flow batteries.
In addition to the signed and initiated projects mentioned above, several major ESS projects with investments exceeding 5 billion yuan are expected to commence production this year. These include Tesla's Shanghai ESS Gigafactory, the second phase of Huahao Lithium Energy's intelligent factory project, Great Power Energy's Qingdao ESS battery project (expected to begin trial production in Q1), Lihua Power Technology's 25 GWh large cylindrical ESS battery project, and Ganfeng LiEnergy's new 10 GWh lithium battery and ESS headquarters project. The total investments for these projects are 5 billion yuan, 5.5 billion yuan, 13 billion yuan, 10 billion yuan, and 5 billion yuan, respectively.
Additionally, according to Battery Network's analysis, since the beginning of this year, global ESS market orders have exceeded 100 GWh, with frequent appearances of 10 GWh+ orders and projects. From renewable energy base ESS integration to commercial and industrial user-side projects, the ESS industry is experiencing a surge in orders, marking a strong start to the year. BYD secured a 12.5 GWh ESS project, Canadian Solar obtained a 960 MWh energy storage system order, EVE received a 50 GWh battery cell order from HyperStrong, Lishen Battery won a 2 GWh ESS order, Risen Energy signed a 1 GWh energy storage system order, CATL secured a 19 GWh ESS order for the UAE RTC project, Envision Energy received an energy storage system order from India, Hithium Energy Storage obtained a 10 GWh ESS order from Samsung C&T, Huawei signed a battery energy storage system cooperation agreement with Faria Renewables, and Narada Power received an ESS order from Australia.
While Chinese companies continue to secure 10 GWh-level orders, the upcoming window for overseas tariff policy changes may lead to a "rush for installations" in the global ESS market in 2025.
For instance, the US plans to increase tariffs on ESS batteries and systems from 7.5% to 25% starting in 2026, with the possibility of further trade barriers. This has prompted companies to accelerate project implementation and exports in 2025 to avoid high tariff costs.
Battery Network observed that the "rush for installations" trend had already begun to emerge in January this year. Coupled with a low base in January 2024, China's ESS battery exports surged.
Data from the China Automotive Power Battery Industry Innovation Alliance shows that in January, China's exports of power and other batteries (note: other batteries mainly refer to ESS batteries, including a small number of small power batteries) totaled 17.5 GWh, up 67.1% YoY. Among them, power battery exports reached 11.1 GWh, up 9.1% YoY, while other battery exports reached 6.3 GWh, up more than 20 times YoY. By material, ternary cathode material batteries grew 108.5% YoY in January, while LFP batteries surged 2,295.0% YoY, with the two combined growing 2,287.6% YoY.
Comprehensive LFP Adoption in ESS Batteries, Chinese Companies' Competitive Edge Strengthens
EVTank data shows that in 2024, China's ESS battery shipments reached 345.8 GWh, accounting for 93.5% of global ESS battery shipments, further increasing China's global market share by 2.6 percentage points.
Thanks to the comprehensive adoption of LFP in ESS batteries, Chinese companies' competitive advantages have become more pronounced. Among the top 10 global ESS battery companies in 2024, eight were Chinese, with CATL leading the market with nearly 110 GWh of ESS battery shipments, capturing 29.5% of the global market share. It was followed by EVE, Xiamen Hithium, BYD, AESC, CALB, REPT Battero, and Gotion High-tech. South Korean companies Samsung SDI and LGES ranked ninth and tenth, respectively.
Research institution InfoLink recently released the 2024 global and overseas ESS battery cell rankings. The data shows that among the top 10 global ESS battery cell companies in 2024, the top nine were Chinese, including CATL, EVE, BYD, Hithium Energy Storage, CALB, REPT Battero, AESC, Gotion High-tech, and Great Power Energy, with Samsung SDI ranking tenth.
In overseas markets, Chinese companies also maintained a significant advantage. The top 10 overseas ESS battery cell companies in 2024 included CATL, BYD, EVE, AESC, REPT Battero, Samsung SDI, Hithium Energy Storage, CALB, LGES, and Gotion High-tech, with Chinese companies occupying eight spots.
It is worth noting that although Chinese companies have already established a leading position in the ESS sector and overseas ESS markets offer relatively high profit margins, expanding into overseas markets still requires caution regarding challenges such as policy and trade barriers, localization testing and channel barriers, technical barriers and compensation risks, supply chain localization cost pressures, and cultural differences.
In January this year, CATL filed for arbitration with the Hong Kong International Arbitration Center due to Powin, a US-based ESS system integrator, defaulting on payments exceeding 300 million yuan.
According to media reports, in December 2024, CATL filed for interim arbitration measures with the Circuit Court of Oregon, USA, citing Powin's cumulative arrears of approximately 310 million yuan (about $44 million) for battery orders in 2022 and 2023. CATL had supplied the corresponding batteries to Powin's Chinese subsidiary, Yangzhou Fengwei New Energy Technology Co., Ltd., as per the contract but had not received full payment.
Powin's domestic ESS battery suppliers include not only CATL but also EVE, REPT Battero, and Hithium Energy Storage.
Conclusion In 2024, ESS battery and system prices continued the downward trend seen in 2023. Although 2025 has started with dual heat in investments and orders, ESS system prices have continued to hit new lows based on market bidding data. In the future, as technology iterates and demand from emerging markets is unleashed, price declines are expected to slow, and the industry will gradually shift from "price wars" to "value competition," with high safety, long lifespan, and intelligence becoming new competitive dimensions.
Meanwhile, the global ESS battery market continues to exhibit the characteristics of "falling prices and rising volumes." According to relevant institutions, cumulative new-type ESS installations are expected to approach 100 GW in 2025, with the global ESS market size projected to reach $120-150 billion. Based on forecasts from multiple institutions, global ESS battery shipments in 2025 are expected to range between 450-500 GWh, maintaining a high growth trajectory.
As the ESS battery market continues to expand, the trend of complementary multi-technology routes becomes more prominent. Sodium-ion battery costs are expected to decline further, and the mass production of solid-state batteries is accelerating. In the future, electrochemical energy storage technologies are likely to exhibit a "lithium-sodium complementarity and solid-state breakthroughs" pattern.
