China’s energy storage industry has seen explosive growth in recent years, positioning the country as a global leader in both capacity and technological innovation. According to the China Energy Storage Alliance (CNESA), China now holds a commanding 38% share of the global energy storage market, driven by a surge in new capacity and groundbreaking advancements in storage technologies.
The industry has experienced unprecedented growth, with the operational capacity of new energy storage systems surging to 34.5 gigawatts (GW), reflecting an annual growth rate of 166%. In 2024 alone, China added 21.5 GW of storage capacity—three times the amount added in the same period last year—accounting for nearly half (47%) of the global increase in energy storage capacity.
Li Chenfei, senior manager at CNESA, credited China’s rapid expansion in battery storage and energy solutions for cementing its leadership position. He pointed to strong government policies, including substantial incentives and ambitious targets for renewable energy and carbon neutrality, which have fueled demand for advanced storage technologies. These policies have been accompanied by a supportive environment for innovation and industry growth.
“The government has made clear commitments to renewable energy and carbon neutrality, setting ambitious targets that accelerate demand for advanced storage solutions,” said Li. “These policies are supported by substantial incentives, enabling companies to rapidly scale their operations.”
China’s dominance in energy storage is further supported by established supply chains and its ability to produce technologies, especially lithium-ion batteries, at a scale and price point difficult to match globally. Technological advancements, such as compressed air energy storage, have also helped bring down system costs, while newer storage technologies are still in the early stages of industrialization and are not yet economically competitive.
As of mid-2024, China’s power storage capacity surpassed 100 GW, reaching 103.3 GW, a 47% increase year-on-year. Lithium-ion batteries continue to dominate the sector, accounting for 98.2% of electrochemical storage capacity, though China is increasingly incorporating long-duration storage technologies into its energy mix. Recent deployments include projects utilizing flywheel, supercapacitor technologies, and compressed-air storage with a capacity of 300 MW.
While competition within China’s domestic market remains fierce, companies are finding significantly higher profitability in overseas markets. As China continues to advance in energy storage, its innovations and scale position it to set global standards for storage technology.