The Energy Storage Industry's Major Transformation: From “Fierce Internal Competition” to Collaborating Against It—Where Is the Future Headed?
On the grand stage of energy transition, the energy storage industry is undergoing a dramatic “showdown.” On one side, production capacity is expanding wildly, like a runaway horse that is impossible to control; on the other side, price wars are raging fiercely, leaving the entire industry trapped in a bottomless “internal competition vortex,” suffering greatly. However, just when everyone thought this “nightmare” would never end, the plot took a sudden turn — many companies in the industry began to unite and call for “anti-internal competition,” striving to break this deadlock and explore new opportunities for development. How did this dramatic shift occur? What lies ahead for the future of the energy storage industry? Let us delve into this industry world filled with challenges and opportunities.
Overcapacity and price wars have escalated to extreme levels.
Once upon a time, the energy storage industry was a “hot commodity” in the eyes of capital, attracting massive inflows of funds. Driven by profit, companies rushed into “expansion mode,” with production capacity growing rapidly like mushrooms after rain. According to relevant data, China's planned energy storage cell production capacity for 2024 exceeded 1,000 GWh. However, reality dealt everyone a harsh blow: actual shipments totaled only 300 GWh, with a production capacity utilization rate of less than 35%. This is akin to preparing a lavish feast only to have a handful of people show up to dine, resulting in vast resources being wasted.
The direct consequence of overcapacity is a fierce price war. The average bid price for lithium-ion energy storage systems has plummeted like a slide, dropping repeatedly. In 2024, the year-on-year decline reached 47.82%, and this trend continued in the first half of 2025, with another year-on-year decline of 29.94%. In this price war, companies are willing to go to great lengths to compete for a limited market share, with some even offering cell prices below 0.4 yuan/Wh. Wh, akin to a war without smoke, with companies battling fiercely, severely compressing profit margins. The industry's average profit margin dropped from 15% in 2022 to less than 5%, leaving many companies struggling to survive.
Policy intervention sparks industry awakening
In response to the industry's chaotic state, policy makers have sounded the call for “rectification.” In February 2025, the Ministry of Industry and Information Technology (MIIT) and seven other departments jointly issued the “Action Plan for High-Quality Development of the New Energy Storage Manufacturing Industry,” explicitly stating the need to strengthen capacity monitoring and early warning systems to prevent disorderly development. The plan also emphasizes the enforcement of penalties for patent infringement and market monopolization, using policy-driven constraints to force the industry back onto the path of technological competition. The introduction of this policy was like an “injection of adrenaline” into the chaotic market, pointing the way toward standardized industry development.
Meanwhile, companies gradually realized that continuing this “internal competition” would lead to the industry's downfall. Thus, a “self-rescue campaign” quietly unfolded within the industry. On August 13, 2025, the China Chemical and Physical Power Source Industry Association released the “Initiative on Maintaining Fair Competition Order and Promoting the Healthy Development of the Energy Storage Industry” (Draft for Public Comment). This initiative served as a “signal flare,” immediately receiving enthusiastic responses from numerous companies within the industry. To date, over 100 organizations have joined the initiative, including industry giants such as BYD, EVE Energy, and Huawei Digital Energy. These companies have all stated that they will compete in the market based on technology, service, reputation, and fulfillment capabilities, avoiding irrational low-price behaviors, and jointly maintaining the industry's fair competition order.
Technological innovation, the key to breaking the deadlock
In this “anti-internal competition” initiative, technological innovation has become the key “weapon” for companies to break the deadlock. Take Haichen Energy Storage as an example. This company, which specializes in the energy storage sector, has invested significant resources and effort into technological research and development since its inception. As of December 2024, the company had filed over 3,900 global patent applications, with more than 690 invention patents granted. Leveraging its robust technological capabilities, it has established a firm foothold in the market.
In December 2023, Haichen Energy released the world's first thousand-ampere-hour long-duration energy storage battery, and in 2024, it rapidly upgraded and iterated to launch the ∞Cell 1175Ah and ∞Power 6.25MWh energy storage systems. In June 2025, the world's first thousand-ampere-hour long-duration energy storage battery, the ∞Cell 1175Ah, began mass production at the Chongqing base. The launch of these innovative products not only met the market demand for long-duration energy storage but also earned the company a good market reputation and economic benefits. In the first half of 2025, Haichen Energy Storage's global shipment ranking rose from fifth place in 2023 to second place, with its overseas revenue share increasing from 1% to 28.6%, and a gross margin exceeding 40%, making it a “dark horse” in the industry.
Demand recovery, overseas markets become the new favorite
While the industry is striving to overcome the “internal competition” dilemma, positive news has also emerged from the demand side. Since March this year, many energy storage companies' production bases have been operating at full capacity. For example, Haichen Energy Storage's Xiamen base and Chongqing manufacturing base have orders booked until September and October, with production schedules fully saturated. According to China Energy Storage Network, production lines at companies like CATL, EVE Energy, RuiPu LanJun, and Envision Energy are also operating at full capacity, with order volumes surging, leading to a situation where “customers are willing to pay a premium but still can't secure orders.”
In addition to the recovery of domestic market demand, the growth of overseas energy storage markets has also brought new development opportunities for companies. According to incomplete statistics from the CESA Energy Storage Application Branch Industry Database, global energy storage cell shipments from January to June 2025 reached 226 GWh, representing a year-on-year increase of 97%. Chinese energy storage companies are increasingly turning their attention to overseas markets, leveraging their advantages in technology and cost to make a name for themselves on the international stage. For example, Sany Silicon Energy provided an “integrated photovoltaic, storage, and diesel” solution for an African mining processing project, helping customers reduce electricity costs by approximately 50%. By exploring the “EPC + F” (design, procurement, construction + financing assistance) and “integrated investment, construction, and operation” models, the company successfully drove the entire industrial chain overseas. Chinese energy storage companies are transitioning from simply selling products to providing comprehensive solutions, gradually establishing a dominant position in the global energy storage market.
The transformation of the energy storage industry from “fierce internal competition” to collaborative efforts to “counter internal competition” is both challenging and full of opportunities. Under policy guidance, through the joint efforts of enterprises, by strengthening technological innovation and expanding market demand, the energy storage industry is expected to overcome its current challenges and achieve healthier, more sustainable development. What surprises will the energy storage industry bring us in the future? Let us wait and see, and witness the industry's remarkable transformation together!