CCTV Highlights the Demand for Energy Storage Chips as Leading Companies Reveal Key Development Strategies

On September 28, CCTV’s finance channel, Economic Information Broadcast, aired a special report focusing on the booming phenomenon of the energy storage market, particularly the challenge of sourcing battery cells. The report highlighted that the National Development and Reform Commission and the National Energy Administration recently released the “Special Action Plan for Large-Scale Construction of New Energy Storage,” which sets a development target of “over 180 million kilowatts.” This goal is expected to generate substantial market demand and directly promote the growth of the energy storage industry, as well as a positive shift in the capital market.

Tian Qingjun, Senior Vice President and President of Envision Energy Storage, stated in an interview that improving the economic viability of energy storage projects is a core driver of the current demand surge. “Currently, the cost of energy storage systems has decreased by about 80% compared to three years ago, with electricity costs in some regions falling below 0.2 yuan per kilowatt-hour. The industry is experiencing an upgrade to larger capacity battery cells, with the new generation of cells expected to reduce system costs by about 40%,” he explained.

During interviews, CCTV reporters found that the domestic demand for energy storage battery cells is exceptionally strong, with leading battery manufacturers indicating that their plants are operating at full capacity. Some orders have already been scheduled into early next year. Tian believes that the ongoing growth in both domestic and international market demand, with a 60/40 ratio, will enable companies capable of international delivery to gain a competitive edge in the market. In the first half of 2025, factory production lines are expected to continue operating at full capacity, with more than 50% of battery cells being exported.

Currently, Envision has ten operational battery cell manufacturing bases worldwide, having delivered over 50 GWh of energy storage battery cells. Notably, Envision’s factory in Tennessee, USA, began operations in April this year, marking the first locally built lithium iron phosphate battery cell production line in North America, which is now ramping up production. Coupled with the capacity increase at their Cangzhou base for large battery cells, Envision expects to double its battery cell delivery volume next year.

Zhang Jianhui, Chairman of Haibosch Creative, also shared insights during the CCTV interview. He noted that in addition to improved economics driving demand, the technological iteration of energy storage battery cells has contributed to the current supply tightness. “We are at a critical transition period, upgrading from 300+ Ah to 500+ Ah and even larger capacity cells. Once these larger capacity production lines come into mass production next year, the current shortage will ease,” he said. Tian also emphasized that most mainstream manufacturers are focusing their resources on developing next-generation products and building production capacity, which is essential for promoting the large-scale application of high-capacity battery cells.

Envision was one of the first companies in the industry to mass-produce 300+ Ah and 500+ Ah energy storage battery cells, and its two generations of products currently have a full order book. The latest generation of 700+ Ah products is also in the preparation stage for mass production.

On September 24, during a video address at the United Nations Climate Change Summit, President Xi Jinping stated that by 2035, China’s total installed capacity for wind and solar power will reach more than six times that of 2020, aiming for 3.6 billion kilowatts. This projection indicates that over the next decade, China will need to add approximately 1.9 billion kilowatts of new wind and solar installations, which will simultaneously create immense demand for energy storage systems.

Chen Haisheng, Chairman of the Zhongguancun Energy Storage Industry Technology Alliance, commented during a CCTV interview that with new energy installations growing by 200 to 300 million kilowatts each year, the demand for energy storage is substantial. The advancements in storage technology and the increase in industry scale have further improved the performance of energy storage while significantly reducing prices. This dual-driven approach, spurred by demand and self-development, has created a convergence point in terms of supply and demand.

Since the beginning of this year, China has moved away from “policy-driven allocation” to “value exploration,” focusing on how to engage in electricity trading to generate profits. Power station projects are gradually crossing the profitability threshold, marking a critical turning point for high-quality development. However, the industry must remain vigilant against systemic risks posed by irrational competition.

On September 17, Zeng Yuqun, Chairman and CEO of CATL, candidly expressed at the World Energy Storage Conference that the energy storage industry is facing risks of disordered expansion. This disordered growth has already led to five major issues: safety concerns, fierce competition, challenges to authenticity, a lack of emphasis on innovation, and severe market speculation. The low-price competition, in particular, is particularly worrisome.

Since 2024, Tian has repeatedly called for the industry to be cautious of disorderly competition. At the EESA Shanghai Energy Storage Exhibition on August 12, he noted that nearly one-third of system integrators are selling at prices below cost, a detrimental competition model that has started to spread to overseas markets. This not only threatens the safety and profitability of energy storage stations but could also undermine the competitive position of Chinese companies in the global energy storage market. In response, Tian proposed three core strategies: first, to establish scientific industry standards and systems to identify quality products based on safety, lifespan, and energy efficiency; second, to improve market mechanisms and policies, establish a capacity warning system, and expedite the improvement of electricity market trading rules to create stable profit models for energy storage; and third, to enhance technological innovation within companies to further promote healthy cost reductions in energy storage.