Surging Demand for Energy Storage Cells Leads to Record Orders Extended into Next Year

In recent times, China’s energy storage industry has witnessed a dual boost from technological breakthroughs and a surge in market demand. According to the Chinese Academy of Sciences, a research team from the Institute of Physics and the National Research Center for Condensed Matter Physics has made significant progress in studying the solid-solid interface contact in all-solid-state lithium batteries.

On the market front, the demand for energy storage cells has skyrocketed, leading to companies receiving orders that extend into next year. The scale of project bids has also seen a substantial year-on-year increase. An Guangyong, an expert from the All-China Federation of Industry and Commerce’s Credit Management Committee, commented in an interview that the phrase “one cell is hard to find” reflects the explosive global demand and the relatively lagging response from the supply side. This year, domestic energy storage demand has exceeded expectations, as the full market entry of new energy has widened the price gap between peak and valley electricity, highlighting the commercial value of energy storage projects.

Data from Dongwu Securities indicates that from January to August 2025, the installed capacity of new energy storage in China reached 75.9 GWh, marking a 42% year-on-year growth. During the same period, the scale of energy storage EPC (Engineering, Procurement, and Construction) bidding reached 116 GWh, reflecting an approximate 40% year-on-year increase. Guo Tao, deputy director of the China E-commerce Expert Service Center, noted that the structural shortage is exacerbating the supply-demand contradiction for energy storage cells. The 314Ah high-capacity cells, as the mainstay of the new bidding projects and overseas supplies for 2025, have become mainstream in the market. However, due to clients locking in production capacity ahead of time, some companies are unable to accept new orders, which has directly led to an increase in energy storage cell prices and a surge in attention towards cell manufacturers.

On the policy front, robust support for industry development has been established. In February 2025, the National Development and Reform Commission and the National Energy Administration issued a notice aimed at deepening the market-oriented reform of new energy grid pricing to promote high-quality development. This included directives to correct improper interventions in the electricity market and to prohibit unreasonable cost allocations to new energy sources.

In September, the same authorities released the “Special Action Plan for the Large-Scale Construction of New Energy Storage (2025-2027).” The overall goal is to achieve an installed capacity of over 180 million kilowatts of new energy storage by 2027, driving direct project investments of approximately 250 billion yuan. Lithium-ion batteries will remain the primary technology route for new energy storage, with a richer variety of technological paths and application scenarios being developed, alongside the cultivation of several pilot application projects.

This series of policies is facilitating the industry’s transition from “mandatory energy storage” to “independent energy storage.” Independent energy storage, as an independent entity in the electricity market, possesses diversified revenue sources and demands higher quality standards for cells, further intensifying the supply-demand imbalance for high-quality capacity. According to Zheng Lei, chief economist at Samoyed Cloud Technology Group, this situation has already had a significant impact on the energy storage supply chain, leading to surging demand for upstream lithium iron phosphate cathodes and coated membranes, while midstream integrators are scrambling for cells and downstream residential and commercial energy storage prices are rising, enhancing the overall industry outlook.

The global surge in demand is further straining the supply of cells. Zhang Xiang, secretary-general of the International Intelligent Transport Technology Association and a visiting professor at Huanghe Science and Technology College, stated that data from the CESA Energy Storage Application Branch’s industrial database shows that in the first half of 2025, Chinese companies secured 199 new overseas energy storage orders and collaborations, with a total scale exceeding 160 GWh, reflecting a year-on-year growth of 220.28%. Dongwu Securities predicts that global demand for energy storage batteries will reach 521 GWh by 2025, representing a 60% year-on-year increase, while capacity release remains limited. The industry’s capacity utilization rate is currently at 80% to 90%, with first and second-tier manufacturers operating at full capacity, suggesting that the shortage of energy storage cells will likely persist until the second half of 2026.

In response to these market opportunities, domestic energy storage enterprises are adjusting their strategies and increasing investments in storage operations. Since September, several listed companies have reported on investor interaction platforms that their energy storage products are at full production capacity, with substantial order backlogs. Huizhou Yiwei Lithium Energy Co., Ltd. stated that its orders for energy storage batteries are robust, currently operating at full capacity. Dongfang Manyu New Materials Co., Ltd. also noted stable supply to both domestic and international clients, with orders remaining strong and production schedules tight. Additionally, Jiangxi Ganfeng Lithium Co., Ltd. has achieved large-scale production of energy storage cells and established long-term stable supply partnerships with leading industry players, ensuring stable deliveries to customers amid the surging demand.

During an investor relations activity, Guoxuan High-Tech Co., Ltd. mentioned that its energy storage business has shown steady growth, securing numerous orders both domestically and internationally, with early signs of success in new application scenarios. Yuan Shuai, deputy secretary-general of the Zhongguancun Internet of Things Industry Alliance, stated in an interview that energy storage listed companies should focus on original technological innovations, tackle core technologies such as high-capacity and high-safety cells, and adopt flexible production to meet iterative demands, thereby avoiding the accumulation of outdated capacity. Strengthening upstream and downstream collaboration and building shared data platforms are also recommended strategies.