China’s electricity market revamp boosts demand for energy storage, leading to a surge in Chinese lithium-ion battery exports. International demand is driven by data centers, renewables, and grid backup needs. UBS raises global battery-energy storage forecast by 25%, with China dominating production of storage cells.

Chinese energy storage manufacturers are experiencing a boom, with a 75% increase in lithium-ion battery shipments this year. China leads in storage and EV battery exports, with over $65 billion worth of exports. Chinese firms capture much of the global investment in battery storage facilities.

Top global cell suppliers are all Chinese, with strong sales growth reported. Pairing solar with storage is crucial for meeting U.S. AI data center power needs. Chinese manufacturers face risks from U.S. restrictions on investment tax credits involving certain foreign entities.

China’s battery exports hit a record $66.761 billion in the first 10 months of the year, surpassing solar PV. Global energy storage cell shipments are expected to rise by 33% to 43% next year. China’s energy storage exports have outpaced EV battery exports, driven by local mandates and profitability reforms.

Reforms in China’s power market have made energy storage plants more profitable to operate. New government plans and subsidies aim to double battery storage capacity by 2027. Provinces are implementing capacity tariffs to incentivize standby capacity. Policy shifts are expected to drive significant growth in energy storage.

The surge in demand for energy storage is driven by Chinese reforms, subsidies, and international needs for grid backup and renewables support. Chinese manufacturers dominate global battery production, with top suppliers all being Chinese. Energy storage is vital for data centers, renewables, and grid stability.

Read more at Yahoo Finance: Analysis-China’s power reforms, global data centre buildout usher in battery boom