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China's Energy Storage Sector Enters New Phase of Market-Driven Growth

Beyond dominant lithium-ion batteries, the landscape is blooming with alternative technologies.

Now the battery energy storage is growing so fast in China.

China's energy storage industry is undergoing a significant transition, moving from policy-led expansion to a new stage defined by technological diversification and market-driven mechanisms.

Scale and Leadership: Solidifying its global leadership, China's installed capacity of new-type energy storage exceeded 100 GW by the end of September 2025.

Beyond dominant lithium-ion batteries, the landscape is blooming with alternative technologies. 

Other long-duration technologies like compressed air and flow batteries are also progressing to commercial demonstration.

 2025 policy directives are phasing out mandatory energy storage allocation for new renewable projects, pushing developers to seek economic justification.

In summary, the future of China's storage sector hinges on innovation and proven profitability in a competitive electricity market.

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