Chinese battery and storage firms see stock prices soar as US-Iran conflict reshapes markets
A first significant impact, highlighting China’s role amidst the US-Iran conflict: shares of CATL, BYD, and Sungrow, Chinese manufacturers of batteries and energy storage equipment, have yielded higher returns than those of major oil companies like Chevron, ExxonMobil, and BP. Since the onset of the US-Israel attacks on Iran, capital has shifted to Chinese stocks in sectors such as solar and wind energy, electric vehicles, and batteries.
The CSI Green Electricity index rose by 6% in March, while the CSI New Energy index grew by 2%, despite the benchmark Shanghai Composite index falling by 8%. Shares of China-listed CATL increased by 19%; Sungrow gained 19.4%; and BYD, also one of the world’s largest electric vehicle manufacturers, marked a +21.9% since the beginning of the US-Israel attacks on Iran. In comparison, BP shares rose by 15.2%, Chevron by 8%; Shell gained +8.3% and ExxonMobil +4.7%.
As reported by the Financial Times, the three Chinese battery manufacturers, CATL, BYD, and Sungrow, have gained more than $70 billion in market capitalization since the outbreak of the conflict. Investors are therefore betting on Chinese stocks linked to renewable energy, focusing in the long term on greater demand for green energy as a reaction to the oil and gas supply crisis.
According to Mobility Foresights’ estimates, the value of China’s domestic BESS market is expected to grow from $48 billion in 2025 to $199 billion by 2032. “Given China’s leadership in key sectors such as electric vehicles, batteries, and power generation equipment, Chinese exports in 2027 and beyond could benefit from increased demand for these products,” Goldman Sachs stated in a note.
Investors bet on renewables amid US-Iran conflict uncertainty
Current uncertainty is favoring bets on the energy transition. Essentially, investors view renewable energies and storage systems as a solution for energy independence, as renewables are less affected by geopolitical tensions than fossil fuels. The surge in market capitalization of Chinese battery giants also highlights that investors no longer see China as a victim of oil crises but as the economy that can offer a solution to withstand these crises. From the War in the Middle East, a “new safe haven” is thus emerging: energy storage capacity and EV technology, sectors in which China holds an almost monopolistic advantage.