Demand in the overseas energy storage market experienced explosive growth in 2025, driving a surge in orders for domestic energy storage cell manufacturers. "Price increases make it difficult to place orders" and "cell availability are difficult" have become hotly debated issues in the industry.
Public data shows that in the first half of this year, Chinese energy storage companies signed over 160GWh of new overseas orders, a 220% year-on-year increase, with significant contributions from markets such as the Middle East and Australia. Furthermore, according to industry insiders, Europe's commercial and industrial energy storage and residential storage sectors are experiencing rapid growth, with a large number of small projects below the megawatt level, while also accelerating planning for some large-scale investment projects.
Looking at overseas orders secured by Chinese companies, companies such as Sungrow Power Supply, BYD, CATL, and Haichen Energy Storage have successively secured GWh-level energy storage projects in the Middle East. Meanwhile, several companies, including Envision Energy Storage, Ruipu Lanjun, Guoxuan High-tech, China Automotive New Energy, Narada Power Supply, Canadian Solar, and Chuneng New Energy, have repeatedly secured large orders in overseas markets, many exceeding GWh in size, demonstrating the strong global competitiveness of China's energy storage industry.
On the other hand, the implementation of "Document No. 136" in China was also a key factor driving the surge in demand for energy storage cells. This policy triggered a "531 installation rush," significantly increasing energy storage installations. Data shows that in the first half of this year, the newly installed capacity of new energy storage in China exceeded 55GWh, a year-on-year increase of 76%. The installed capacity reached a historical high, and the market-oriented profit model has gradually become clear.
"Order Wave" ArrivesLeading Battery Cell Manufacturers Enter Full Production
Faced with a surge in domestic and international energy storage orders, the energy storage battery cell market, previously in a period of adjustment due to structural overcapacity, has rapidly shifted to a situation where even paying more for supply is difficult. The rapid reversal of the industry's supply and demand dynamics has far exceeded market expectations in both speed and intensity.
Driven by the surge in orders, domestic energy storage companies have generally reached full production, while leading companies continue to face capacity constraints, with the resurgence of a shortage of cells. In terms of production capacity and scheduling, CATL has reportedly announced orders exceeding 48GWh, with production scheduled through the first quarter of 2026. A representative from Haichen Energy Storage stated that its Xiamen and Chongqing bases have been operating at full capacity since March of this year, with orders booked through September and October, putting production plans extremely full. Production lines at companies like EVE Energy, Ruipu Lanjun, and Envision Power are also operating at high capacity, with new orders still waiting in line. Currently, the entire industry is experiencing a period of strong supply and demand, with capacity constraints being crucial.
Meanwhile, performance reports from several battery cell manufacturers confirm the current booming demand in the energy storage market. Financial reports show that CATL's energy storage business revenue reached 28.4 billion yuan in the first half of the year, with a gross profit margin of 25.52%, significantly higher than the 22.41% of its power battery business. Its capacity utilization rate increased to 89.86%, a significant increase of 13 percentage points from the same period last year, setting a new high among first-tier manufacturers. It is estimated that its energy storage battery shipments reached 55GWh (25GWh in the first quarter and 30GWh in the second quarter).
EVE Energy also performed exceptionally well. In the first half of the year, EVE Energy's energy storage battery shipments reached 28.71GWh, a year-on-year increase of 37.02%. Its energy storage business revenue reached 10.298 billion yuan, a year-on-year increase of 32.47%. These data indicate that the energy storage business has become a key driver of its overall revenue growth.
Repulse Lanjun has also demonstrated strong momentum amid this surge in demand. In the first half of the year, its energy storage battery shipments reached 18.87GWh, a year-on-year increase of approximately 119.3%. Its energy storage business generated revenue of 5.083 billion yuan, a year-on-year increase of 58.4%, accounting for 53.6% of its total revenue, surpassing its power battery segment for the first time and becoming the company's largest source of income.
In addition, companies including Envision Power, BYD, Guoxuan High-tech, Haichen Energy Storage, Sunwoda, Sinovation, and Penghui Energy also performed well, collectively ranking among the top 10 global energy storage cell shipments for the first half of 2025, as released by third-party organization InfoLink. Notably, all of the top 10 companies are Chinese, with a combined market share of 91.2%, demonstrating China's unwavering dominance in the global energy storage market.
Exploding Demand in Overseas Markets
Looking at the regional distribution of Chinese companies' overseas orders, the Middle East market has performed particularly well. In the first half of this year, the Middle East accounted for over 23% of orders, making it the fastest-growing "dark horse" in the global energy storage market. Meanwhile, projects in traditional energy storage markets like Europe and Australia continue to accelerate. Furthermore, emerging markets like Southeast Asia, Africa, and Latin America are gradually unlocking their potential and welcoming a surge of large orders, demonstrating a diversified market growth landscape.
This trend continued in the third quarter. For example, Sungrow signed a major 2.4GWh European energy storage order, entering the Bulgarian market for the first time. China Automotive New Energy signed a memorandum of understanding with IndiGrid, India's largest power infrastructure investment trust, to supply 5GWh of energy storage systems in 2026-2027. These orders not only reflect the continued vitality of regional markets but also demonstrate that Chinese companies are continuously expanding into emerging markets.
Industry insiders point out that the accelerated implementation of these projects is driven by multiple rigid demands, including grid bottlenecks, electricity price fluctuations, policy subsidies, and energy transitions in many regions around the world. Energy storage has fully transitioned from an "option" to a "necessity." Judging from overseas market performance, traditional power systems are increasingly facing bottlenecks, while the construction of new energy sources continues to accelerate, directly driving a significant increase in orders for Chinese energy storage companies, with emerging markets performing particularly well. Furthermore, overseas markets not only boast robust demand but also generally offer higher gross profit margins than domestic markets, offering companies greater profit margins.
However, a word of caution is warranted: despite the influx of orders from overseas markets, small and medium-sized enterprises (SMEs) should remain cautious about expanding overseas. "Currently, the vast majority of large orders are still concentrated in the hands of leading companies, and it's uncertain whether SMEs can seize this opportunity. At least in mature markets like Europe and the United States, opportunities are already quite limited." An industry insider frankly stated that, in Europe, for example, the local market places particular emphasis on brand strength and project experience. If a company isn't on the mainstream supplier list or lacks the backing of a major project, it's difficult to gain recognition. Brand building is not only time-consuming but also requires continuous financial investment, making it a significant challenge for SMEs with limited resources.
Furthermore, overseas operations and service capabilities have become key barriers. Markets like Europe require local teams to provide 24/7 immediate response, including on-site commissioning, installation guidance, and other intensive service support. This alone is enough to deter many SMEs from entering the market. This suggests that behind the current surge in orders, industry resources are rapidly concentrating on leading players, leading to an increasingly differentiated market landscape.
On the other hand, the hidden concern of "involution" has long been a deep-seated issue plaguing the industry's healthy development. Despite the current shortage of battery cells, the downward trend in prices continues. For example, in the recently launched China Energy Construction Corporation's 25GWh energy storage system procurement project, the winning bid of 0.37 yuan/Wh for a 4-hour energy storage system still sets an industry record, representing a drop of over 42% from the end of 2023.
Despite the current strong order book and fervent enthusiasm for overseas expansion, relying solely on price competition is unsustainable. The industry urgently needs to shift from low-price expansion to building diversified competitive advantages, such as technological differentiation, brand enhancement, and localized service capabilities, to avoid repeating the domestic experience of "increasing revenue but not profits." Achieving rational competition and healthy growth amidst rapid expansion has become a key challenge for the sustainable development of China's energy storage industry.
