context: The Ministry of Industry and Information Technology, along with seven other agencies, released the action plan for new energy storage manufacturing high-quality development on 17 February 2025, aiming to establish international competitiveness in the sector by 2027. This is the first national-level new energy storage supply-side policy document. The document aligns with the 9 February National Development and Reform Commission and National Environment Agency directive eliminating mandatory storage requirements for new energy projects.
With new energy storage emerging as a key economic driver and surpassing a market value of C¥3 tn, the latest action plan emphasises strategic industrial planning, stricter monitoring of lithium battery production capacity and curbing reckless investments, reports Caixin.
It encourages companies to cluster in resource-rich regions like the Yangtze River Delta and the Greater Bay Area, fostering synergy with renewable energy and key raw material supplies. It also promotes the commercialisation of emerging technologies, including sodium-ion, solid-state and flow batteries. While lithium batteries remain dominant, flow batteries offer longer lifespans and sodium-ion provides a cost-effective alternative. The plan aims to cultivate 3–5 globally leading enterprises by 2027.
Despite significant cost reductions in energy storage technologies—particularly lithium batteries—further declines are essential to enhance the economic viability of storage projects, notes Liu Yong 刘勇 China Chemical and Physical Power Industry Association Energy Storage Application Branch secretary-general. This is crucial for the industry’s sustainable development amid intensifying competition among energy storage technologies.
As domestic competition heats up, Chinese firms are aggressively expanding abroad, Caixin reports. In 2024, overseas energy storage contracts exceeded 150 GWh, with deployments across North America, Europe and Southeast Asia. The plan supports international cooperation while reinforcing domestic technological self-reliance.