Chinese energy storage firms push harder overseas as orders boom

Published Fri, Apr 10, 2026 · 05:45 PM

[BEIJING] Chinese energy storage manufacturers are experiencing a surge in overseas orders and accelerating their factory expansions to capture growing international demand.

New overseas orders for Chinese energy storage companies reached 366 gigawatt-hours in 2025, marking a 144 per cent year-on-year increase, according to the China Energy Storage Alliance.

The momentum has continued into the first quarter of 2026, with exports of large-scale storage systems jumping more than 130 per cent and residential systems growing by over 65 per cent.

Over 70 Chinese companies have secured orders across more than 60 countries and regions, primarily targeting core markets in Europe, Australia, North America and the Middle East.

As the global energy transition and the artificial intelligence boom drive unprecedented demand for grid flexibility and backup power, Chinese manufacturers are dominating the international battery supply chain, even as they navigate mounting regulatory and geopolitical hurdles in Western markets.

Demand explosion

Wang Bing, product director at the research institute of Guangzhou Great Power Energy and Technology, told Caixin during the recent 14th Energy Storage International Conference and Expo that the company’s overseas business grew 300 per cent in 2025.

He noted that export production lines ran at full capacity during the first quarter of this year to meet demand across residential, commercial, industrial, and large-scale utility sectors. Wang said that several gigawatt-scale orders have overwhelmed the company’s capacity.

The broader industry is speeding up overseas factory construction. In March, Spanish media reported that Xiamen Hithium Energy Storage Technology plans to invest 400 million euros (S$596 million) to build a battery plant in Spain, which is expected to begin operations in 2027. Spain plans to deploy about 22 gigawatts of storage by 2030 to integrate more renewable energy.

Sungrow Power Supply signed an agreement in January with the Egyptian government and Norway’s Scatec ASA to build a 10-gigawatt-hour factory in the Suez Canal Economic Zone, slated for April 2027. On Feb 5, Sungrow announced a 230-million-euro plant in Poland designed to produce 20 gigawatts of inverters and 12.5 gigawatt-hours of storage systems annually.

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The surge is largely driven by AI data centres, which need fast-acting battery systems to provide backup power within milliseconds if the grid becomes unstable, Wang said. He added that Great Power has developed a battery solution for a major overseas data centre client, following a request made in early 2025. Looking ahead, he expects demand from data centres worldwide to grow rapidly by the end of 2026, leading to fierce competition in the market.

Yang Bo, general manager of Hoymiles Power Electronics, told Caixin and other media at the expo that photovoltaics and energy storage drive each other. Storage is essential to stabilise grids strained by the rapid expansion of solar power, which explains why the overseas market is developing beyond many expectations.

Risks behind the opportunities

Despite the surging demand, Chinese exporters face stringent regulatory barriers that carry significant operational risks. The European Union requires carbon footprint certification, battery passports, and corporate due diligence for imported batteries, Wang said.

The EU introduced carbon footprint requirements in February. The process is time-consuming, especially when it comes to verifying emissions across suppliers, Wang said.

Battery passport and due diligence rules, expected to take effect between 2027 and 2028, will require full traceability from raw materials to transport. Wang warned this could force companies to disclose sensitive commercial information, such as cell material ratios, while those that refuse may face high carbon tariffs.

European and North American clients also demand extensive green commitments, including 15-year to 20-year operational maintenance and battery recycling plans. An industry insider noted that making long-term service promises simply to secure orders could saddle Chinese companies with unaffordable future costs, despite their current price advantages.

In the US, strict national standards and trade barriers created by the Inflation Reduction Act pose further hurdles. Great Power is responding by establishing localised assembly plants with regional partners to process components shipped from China.

While direct overseas investment helps bypass trade barriers, Wang noted that building foreign plants remains difficult due to the lack of supporting supply chains. He suggested that expanding abroad as an integrated supply chain cluster is a more secure strategy than venturing out as an isolated company. CAIXIN GLOBAL