Market Overview
China's energy storage sector experienced explosive growth in 2025, with new-type storage additions reaching 66.43 GW and 189.48 GWh during the year. Total new-type storage capacity reached 144.7 GW by year-end, while overall energy storage capacity including pumped hydro exceeded 213.3 GW, making China the world's largest energy storage market.
- •66.43 GW and 189.48 GWh of new-type storage added in 2025
- •Total new-type storage capacity reached 144.7 GW
- •Overall energy storage capacity exceeded 213.3 GW
Growth Drivers
China's energy storage expansion is propelled by an unprecedented buildout of renewable energy infrastructure requiring grid-scale storage solutions to manage intermittency from solar and wind generation. Supportive policies and regulatory frameworks have created favorable market conditions, driving strong installation growth momentum. The declining cost trajectory of lithium-ion batteries and domestic manufacturing scale further accelerates deployment economics.
- •Renewable energy integration requirements driving storage demand
- •Supportive government policies and regulatory frameworks
- •Declining battery costs and domestic manufacturing advantages
Segmentation and Regional Analysis
New-type energy storage systems, including lithium-ion batteries and other electrochemical technologies, have become the primary growth engine, representing the dominant share of new installations in 2025. Geographic deployment patterns show concentration in provinces with high renewable penetration and grid infrastructure constraints. The Asia Pacific market benefits from China's integrated supply chain ecosystem, spanning raw materials, cell manufacturing, and system integration.
- •Lithium-ion batteries dominate new-type storage deployments
- •Provincial concentration around renewable-rich regions
- •Integrated domestic supply chain from materials to system integration
Trends and Outlook
What are the recent trends and outlook?
Sustained double-digit growth is projected through 2030 as China pursues carbon neutrality goals and continues expanding renewable energy capacity. Technology diversification beyond lithium-ion, including sodium-ion batteries and compressed air energy storage, is gaining commercial momentum. Supply chain localization initiatives and international market expansion by Chinese manufacturers are expected to reshape global competitive dynamics.
- •Projected sustained growth aligned with carbon neutrality targets
- •Emerging technologies like sodium-ion gaining market share
- •Chinese manufacturers expanding into international markets
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Connect to an analyst →Market size and forecast drawn from Xinhua News Agency. Historical years before 2025 and all forecast years are Claight estimates at the stated CAGR. Retrieved 2026.