Electric Vehicle Market Transformation: From “Policy Supply” to “Market Demand”
As of October 15, 2025, the rapid recovery of the electric vehicle market has been evident, with a key focus on clear demand for electric vehicle charging. This demand is driven by the pricing of electricity in the market, ensuring the effective utilization of charging capacity.
Since the implementation of the new electricity pricing policy in June, charging stations have seen a significant increase in usage, with manufacturers accelerating production to meet the current high demand for electric vehicle charging. This surge reflects an urgent need to address the high energy consumption associated with electric vehicles.
Moreover, the issue of energy supply stability has become increasingly important. The fluctuating nature of renewable energy sources, such as wind and solar, has added complexity to the electric grid, necessitating a robust strategy to enhance energy storage capacity. This includes the construction of lithium battery storage systems, which are currently the most common solution to stabilize energy supply.
Since 2017, several provinces have introduced policies to strengthen energy storage systems, with 20 provinces already requiring new energy projects to integrate energy storage solutions. The government is emphasizing the need for reliable energy supply, and as of 2021, the requirement for energy storage capacity has been heightened due to increasing demand.
Looking ahead, the national energy administration plans to increase new energy storage capacity significantly. By 2024, it is projected to reach 43.7 GW/109.8 GWh, reflecting a growth of 103%/136%. Furthermore, by the first half of 2025, the planned new energy storage capacity is around 54 GWh, which is a 68% increase compared to previous years.
In summary, the transition of the electric vehicle market from a supply-driven to a demand-driven model is a crucial shift. This change is expected to improve the industry’s sustainability and efficiency. The government’s policies, including the new electricity pricing structure, are designed to support this transformation, ensuring that both electric vehicles and energy storage systems can thrive in the evolving market.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/transitioning-energy-policies-from-supply-security-to-market-dynamics-in-chinas-power-sector/
