Accelerating Restructuring in the Energy Storage Sector: Delays and Terminations of Projects by Listed Companies

The energy storage sector is undergoing a rapid restructuring. In February 2025, Document No. 136 clarified that energy storage configurations cannot be prerequisites for the approval of new energy projects. By the end of April, Document No. 394 mandated full coverage of the power spot market. This “policy storm” in China’s new energy industry is accelerating the market-driven progress of the energy storage sector.

Amidst the pressures of value reconstruction and technological competition within the industry, leading companies are increasing R&D investments and seeking opportunities abroad to enhance their competitiveness. Conversely, some publicly listed companies with substantial financial resources and R&D capabilities have opted to slow down their pace for stable growth, resulting in project terminations and capacity clean-ups.

Recent statistics from the Polar Star Energy Storage Network indicate that several listed companies, including HeMai Co., Ltd., GaoLan Co., Ltd., KeXin Technology, HuaZi Technology, and GuoAnDa, are experiencing changes in their energy storage strategies. These changes encompass the manufacturing of energy storage battery packs, R&D and industrialization of energy storage batteries, integrated solar-storage projects, and the expansion of fire prevention systems for energy storage cabinets.

According to disclosures from some companies, the primary reason for these adjustments is the changing external environment and increasing competition within the energy storage industry.

Project Delays and Terminations

HuaZi Technology

On April 18, HuaZi Technology announced that the completion date for its “Integrated Photovoltaic + Energy Storage” project would be postponed to December 31, 2026. Initially announced in 2022, this project aimed to raise 910 million yuan for the construction of energy storage stations and the integrated project. The plan includes a 100 MW/200 MWh energy storage station and a 100 MW/200 MWh project at the GuYuan Substation, with a total photovoltaic generation capacity of 20 MW, incorporating 4.4 MW/8.80 MWh of energy storage equipment. The static investment payback period for this project is estimated at 13.08 years, with an internal rate of return of 7.07%.

KeXin Technology

On April 24, KeXin Technology disclosed that due to significant fluctuations in domestic energy storage cell and material prices, along with intensified market competition, the advancement of its “Energy Storage Lithium Battery System R&D and Industrialization Project” would be delayed. Initially set to raise 600 million yuan, the project aims to establish a production line for 2 GWh of energy storage lithium batteries and systems. However, as of December 31, 2024, no funds had been allocated to this project. The company has now postponed the project, expecting it to reach operational status by January 8, 2026.

HeMai Co., Ltd.

On April 29, HeMai Co., Ltd. announced the termination of its energy storage inverter industrialization project due to escalating geopolitical tensions and a complex global trade environment. This termination will not affect the company’s main business operations and aligns with its long-term development strategy. Previously, the company had planned to invest approximately 55.78 million yuan in this project.

GaoLan Co., Ltd.

GaoLan Co., Ltd. also announced the termination of its investment in a comprehensive thermal management R&D and high-end manufacturing project as of April 24. This decision was made in light of significant changes in the macro environment and competitive landscape in the industry.

GuoAnDa

GuoAnDa has faced challenges in its energy storage fire suppression systems, with two capacity projects initiated since its listing. The first phase has incurred continuous losses, leading to delays in the second phase expansion plan. The company had planned to allocate 34.99 million yuan for the production of fire prevention and suppression systems for lithium battery storage cabinets, but recent reports indicate that the expected benefits have not materialized due to a competitive market environment.

Conclusion

The adjustments in capacity plans by these companies reflect broader trends in the development of the energy storage sector over the past two years. Companies are inevitably facing challenges such as technological iterations and price competition. Some have been able to cut losses and terminate plans, while others are still moving forward but may find themselves in difficult situations. With the new round of policy adjustments, the energy storage market is shifting from previously mandated requirements to demand-driven initiatives, making technological performance a key factor in guiding market trends. In future market competitions, it is likely that more companies will be eliminated from the industry.