China’s Battery Storage Expansion equal to 10 times US capacity in 2025

• Chinese battery makers plan over 600GWh of new ESS capacity in early 2026, signaling massive renewable energy growth.

• Total planned output could reach 900GWh annually, with 70% dedicated to energy storage.

• Investments of 180 billion yuan (US$26.3B) highlight strong industry confidence.

• China controls 80%+ of the global ESS market amid surging global demand.

• AI expansion and decarbonization goals are accelerating storage infrastructure worldwide.

  
  

China’s top battery manufacturers have revealed sweeping plans to dramatically expand production for the energy storage system (ESS) market, announcing more than 600 gigawatt-hours (GWh) of new capacity within the first two months of 2026 alone. The scale of these commitments highlights the rapid growth of renewable energy infrastructure worldwide and the increasing importance of large-scale energy storage.

The proposed projects—spanning industry leaders such as Contemporary Amperex Technology Ltd (CATL) and Gotion High-tech—represent a staggering volume. By comparison, the total battery storage capacity installed across the United States in 2025 reached 58GWh, making the newly announced Chinese capacity roughly ten times that figure.

Data from the Shenzhen-based GGII Energy Storage Research Institute shows that 19 mainland battery producers are preparing to collectively invest around 180 billion yuan (approximately US$26.3 billion) to construct new lithium-ion battery manufacturing facilities. Once these projects are fully operational—some as early as late 2026—they are expected to contribute a combined 900GWh in annual output. GGII estimates that roughly 70 percent of this capacity will be allocated to energy storage systems, while the remaining 30 percent will serve the electric vehicle (EV) market.

Energy storage systems integrate batteries with management software, power conversion equipment, and control technologies. They play a critical role in capturing surplus electricity generated from renewable sources such as wind and solar, storing it for later use, providing backup power during outages, and maintaining grid stability. To put the scale in perspective, a single gigawatt-hour of battery capacity can meet the annual electricity needs of about 750,000 households.

Industry executives attribute the surge in ESS investment partly to the rapid expansion of artificial intelligence infrastructure. Davis Zhang, a senior executive at battery supplier Suzhou Hazardtex, noted that the growth of AI-driven computing is significantly increasing demand for renewable energy. As a result, supporting storage systems are poised for swift expansion. He added that the global push to reduce carbon emissions will likely spur the construction of additional ESS facilities in the years ahead.

China has solidified its position as the dominant player in the global ESS market, with mainland companies accounting for more than 80 percent of worldwide share. According to Seoul-based SNE Research, global demand for ESS batteries jumped 79 percent year on year to reach 550GWh in 2025.

While China’s energy storage sector benefits from strong policy support and industrial momentum, the United States is intensifying efforts to build its own supply chains. Washington has been working to restructure battery sourcing in a bid to reduce reliance on Chinese-made cells and components.

Domestically, China’s storage market is also expanding rapidly. Benchmark Mineral Intelligence reports that newly installed battery storage capacity on the mainland rose 40 percent in 2025 compared with the previous year, reaching a record 174.2GWh.

Among the most notable projects is CATL’s plan to invest 20 billion yuan in a zero-carbon manufacturing hub in Ningde, Fujian province, where the company is headquartered. Construction is slated to begin in the second quarter of 2026, with the facility expected to deliver up to 200GWh of annual production capacity once fully operational. In 2025, CATL controlled about 30 percent of the global ESS battery market, according to SNE, with Shenzhen-based Eve Energy ranking second at 12 percent.

Upstream suppliers are equally optimistic. Ganfeng Lithium, the world’s largest lithium metal producer, recently forecast “explosive growth” for the global ESS sector in 2026, driven by a wave of renewable energy construction projects worldwide.

This confidence is mirrored in China’s export performance. Customs data show that in the first 11 months of 2025, the country shipped 4.25 billion lithium batteries overseas, with export values exceeding US$69 billion. That marked year-on-year increases of 19.3 percent in volume and 25.6 percent in value.

Taken together, the investment surge, export momentum, and growing global appetite for clean energy infrastructure point to a pivotal year ahead for China’s battery industry—and for the future of energy storage worldwide.