Under Dual Carbon Goals, Lithium Battery Energy Storage Becomes the Second Growth Curve, Installed Capacity Surges 82.9% YoY

Driven by the global "dual carbon" goals, energy storage has emerged as a critical enabler for the integration of new energy sources, with market demand surging beyond expectations and becoming the second growth curve for the lithium battery industry, following power batteries. Although the cancellation of mandatory energy storage allocation policies in early 2025 sparked industry concerns about growth rates, the continuous release of domestic and overseas market demand since the second half of the year has propelled the energy storage industry to achieve robust growth. According to industry analysis data, China's lithium battery energy storage installed capacity is expected to reach 157 GWh in 2025, a year-on-year increase of 82.9%; globally, newly added energy storage installed capacity is projected to hit 268 GWh, representing a 48% year-on-year rise, far exceeding early-year expectations.

The booming demand has directly triggered a capacity expansion spree on the supply side. Energy storage battery manufacturers are ramping up their capacity layout, leading material enterprises are basically operating at full capacity, and some cell manufacturers and integrators have already completed long-term contract negotiations for 2026 ahead of schedule, with quoted prices generally on the rise. Meanwhile, automotive giants and cross-border enterprises are also entering the energy storage business, rapidly penetrating the market by leveraging their accumulated strengths in battery technology and supply chain management. This has further expanded the number of market participants and driven the iteration of energy storage products and cost optimization. From the perspective of the global competitive landscape, Chinese enterprises hold an absolute advantage: in the first three quarters of 2025, all top 10 global energy storage cell enterprises were Chinese, with a combined market share of 89.9%, highlighting China's core competitiveness in the energy storage industry chain.

Overall, driven by policy guidance, technological innovation and market demand, the lithium battery industry has successfully broken through the predicament of "involution" and entered a golden age of high-quality development. Going forward, with the continuous release of overseas production capacity and further penetration of the energy storage market, the industry's growth space will continue to expand, and China's lithium battery industry will play an even more important role in the global energy transition process.