Policy Stimulus + Offshore Demand Surge: China’s energy storage supply will not meet the demand for 500Ah+ large-scale energy storage systems, marking a significant “windfall.” On October 9, 2025, at 09:04, the new wave finance APP reported that following an increase in offshore energy demand, China’s energy storage market is shifting from high supply to insufficient demand, based on the latest analysis from the China Energy Storage Industry Development Report (2025-2032).
The report highlights that energy storage batteries, which are core components of energy storage systems, primarily function to store energy and provide power when needed. The quality and performance of energy storage batteries directly impact the stability and lifespan of energy storage systems. By 2024, the expected production capacity of energy storage batteries will reach approximately 1116.38 GWh, with a projected increase to 77.3 GWh in new energy storage installations.
In 2024, China’s energy storage battery output is expected to be around 301 GWh, demonstrating a significant increase. Starting from 2025, with the expansion of the global energy storage market, China’s energy storage supply will exceed demand, leading to a substantial increase in battery production capacity. This expansion is expected to be driven by multiple factors, including technological advancements and government policies aimed at incentivizing energy storage development.
According to projections, by the first half of 2025, China’s new energy storage market will reach 178.03 billion yuan, reflecting a growth of 127.78% compared to previous years. The total revenue from energy storage projects is expected to account for 40.89% of the industry’s growth. Moreover, the energy storage sector is expected to become the largest revenue source among energy companies, with significant contributions from companies specializing in energy storage technology.
The dynamics of the energy storage market are shifting as the demand for offshore energy storage contracts increases. By February 9, 2025, government policy changes and increased offshore energy storage contracts will drive further growth. The report indicates that demand for energy storage systems is projected to double in the coming years, with significant new projects anticipated.
By the second half of 2025, the new energy storage installations in China are expected to reach 94.91 GW, showcasing an increase of over 30% compared to the previous five years. The report also indicates that by 2025, China’s energy storage output will be approximately 240.21 GWh, with a year-on-year growth of 106.1%. The majority of this increase will come from Chinese companies, which will dominate the energy storage market landscape.
In conclusion, as China continues to scale up its energy storage capabilities, the transformation of the energy storage market is imminent. By mid-2025, projects with production capacities of 500Ah and above will be at the forefront of this growth, indicating a robust future for the energy storage industry.
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