China energy storage systems and export momentum
China’s power market restructuring is strengthening the economics of energy storage just as international demand accelerates. That demand is feeding production of China energy storage systems at scale. This year, Chinese companies could see a 75 percent jump in global exports of lithium-ion battery cells, according to Reuters. The surge is not accidental, it reflects targeted policies, industrial scale, and precise timing.
Exports of batteries and China energy storage systems
This year China exported electric vehicle batteries and energy storage systems worth more than $65 billion, reinforcing its leadership in a sector critical for scaling wind and solar power and for supplying electricity to data centers.
Exports of batteries for China energy storage systems and other non-automotive uses rose 51.4 percent in the first 11 months of 2025 compared with the same period a year earlier. That growth outpaced the 40.6 percent increase recorded by EV battery exports, according to estimates from the China Electric Vehicle Industry Technology Innovation Strategic Alliance. China already holds close to 40 percent of global battery-based energy storage capacity.
Updated data from Ember show that China’s clean technology exports reached $20 billion in August 2025, a new record. Electric vehicles led the surge, with sales up 26 percent between January and August 2025 compared with the same period in 2024. Battery exports followed closely, rising 23 percent. Together, EVs and batteries now account for more than twice the value of solar photovoltaic exports.
Data centers, renewables, and policy reforms drive growth
Analysts point to the boom in data centers and the expansion of renewable energy at home as key drivers of record Chinese sales. Additional momentum comes from reforms and subsidies introduced by the Beijing government, which are lifting overall demand for China energy storage systems.
Rising international demand is moving in parallel with the global buildout of data centers, the need to reinforce Europe’s aging power grids, and strong Chinese renewable energy deployment across the Middle East.
Global installations of energy storage systems set to rise
UBS expects global installations of battery energy storage systems to increase by 25 percent in 2026. The International Energy Agency estimates that global investment in battery storage will grow 16 percent this year, reaching $66 billion.
China dominates battery cell manufacturing
As Reuters reports, Chinese companies are set to lead these gains. While Tesla remains the world’s top provider of energy storage systems, China continues to dominate the production of the battery cells that make those systems possible.
The six largest global cell suppliers, CATL, HiTHIUM, EVE Energy, BYD, CALB, and REPT BATTERO, are all Chinese, according to a recent ranking by consultancy Infolink. Among the top ten, only AESC appears as a non-Chinese company.
EVE Energy’s energy storage sales volumes rose 35.51 percent in the first three quarters of 2025 compared with the same period last year. REPT BATTERO reported record battery shipments in the third quarter. Market leaders CATL and BYD did not disclose third-quarter figures. Historically, energy storage accounted for a smaller share of their revenues than EV batteries and vehicle sales, but that share is now increasing.
Power market restructuring boosts storage economics
Power market reforms introduced in June require new projects to sell electricity through competitive auctions rather than fixed tariffs. The shift has improved margins for storage operators that buy electricity at low prices and sell it when prices rise.
As a result, energy storage facilities operated an average of 3.08 hours per day in the third quarter of 2025, up sharply from a year earlier, according to the China Electricity Council. These policies align with a $35 billion national plan aimed at nearly doubling energy storage capacity by 2027, supported by new provincial subsidies.
China turns domestic reforms into a global advantage
By restructuring energy markets to reward flexibility while AI-driven electricity demand rises worldwide, Beijing has transformed a previously underperforming segment into a profit engine. Domestic reforms are unlocking idle capacity, while global grid stress and data center expansion are pushing Chinese battery sales abroad.
The result is a self-reinforcing cycle. A stronger domestic market supports scale, scale drives costs down, and lower costs reinforce China’s dominance overseas. Geopolitical risks remain, particularly given US restrictions, but few countries can match China’s speed, pricing, and manufacturing capacity.