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Beijing’s battery manufacturing firms have secured approximately 200 overseas orders (+220% YoY) in H1 2025, totaling 186 gigawatt-hours, after an overcapacity slump in 2024. The country plans to inject about $32 billion (250 billion Yuan) into adding 180 GW of new battery storage capacity by 2027.
China Energy Storage Alliance reportedly revealed that the country’s battery-producing firms are scrambling for executives in overseas markets as orders skyrocket in Europe, Australia, and the Middle East. Nearly 60% of all orders came from the Middle East, Europe, and Australia, while only 3% came from the U.S. market due to tariff tensions. Proposals amounting to hundreds of millions of Yuan annually have become the norm despite growing concerns over the sustainability of small and medium-sized firms.
Cryptopolitan reported in mid-August that Chinese EV makers, including battery suppliers, are reacting to increasing pressure abroad and at home. To survive, companies moved most of their funds overseas, with 74% of it going into battery manufacturers. Domestic investment in production has decreased from $90 billion in 2022 to $41 billion in 2023, and is expected to further drop to only $15 billion this year.
Gao believes that exporting is not enough
The Chairman of Trina Solar, Gao Jifan, said simply exporting is not enough due to tariff pressures. He, therefore, believes overseas production should be localized. Gao says local manufacturers should either move their operations abroad or exit the game entirely.
However, Chinese companies in the battery manufacturing sector have reportedly been posting strong growth, with 47 out of 55 listed companies remaining profitable during the first half of 2025. China’s Li-ion manufacturer CATL (Contemporary Amperex Technology Co.) reported an operating revenue of $25.15 billion (RMB 178.88 billion), an increase of about 7.3% YoY. The company’s net profit attributable to shareholders grew 33.33% to reach RMB 485 billion.
Wood Mackenzie, an energy research and consulting firm, predicts global investment in battery production to clock $1.2 trillion by 2034. The consulting firm claims that this investment is needed to support the production of over 5,900 GW of solar and wind energy capacity during that period. The company’s report emphasizes that grid-forming, advanced battery technology remains crucial for maintaining the stability of power grids as renewable energy sources become prevalent.
Clenaview data suggests an exploding U.S. batteries market
Energy data portal Cleanview shows that battery systems have only played a peripheral role in the U.S. for years. According to the report, power utilities have been focusing more on building their capacity from renewable energy sources and natural gas plants. The data revealed that the U.S had 30 times more solar capacity and 74 times more wind capacity than battery capacity five years ago.
However, U.S. utilities encouraged by rising energy density levels and steady cost declines have been forced to ramp up battery installations. Battery storage output currently exceeds other power sources in certain markets. Wind and solar capacity in the U.S. has dropped to about five times more compared to battery capacity, partly due to a 40% price decline since 2022.
The Cleanview report claims that more than 100 MW of utility-scale battery storage has been installed in 19 states, while utility battery capacity has increased 15-fold to 30,000 MW since 2020. The U.S. solar sector has added 84,200 MW, while wind power has increased its capacity by 7,000 MW over the same period.
Lazard, a financial advisory and asset management firm, stated that falling costs are the biggest reason for surging battery deployments in the United States. The company’s 2025 LCOE+ report shows that power plants focusing on new-build renewable energy are the most competitive. The LCOE (levelized cost of electricity) for utility-scale solar farms and batteries ranges from $50 to $131 per MWh, while that of new natural gas peaking plants ranges between $47 and $170. Coal-powered plants have an LCOE of about $114 per MWh.
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