Energy storage faces a "battery cell shortage": Orders Stretch to 2026, High Profits Can't Hide Industry Undercurrents

In 2025, the overseas energy storage market experienced explosive growth in demand, leading to a surge in orders for domestic energy storage cell companies."Hard to schedule due to price increase" "A single chip is hard to find"It has become a hot topic in the current industry.

Public information shows that in the first half of this year, Chinese energy storage companies signed new overseas orders totaling over 160 GWh, representing a year-on-year increase of 220%.Markets such as the Middle East and Australia have contributed significantly.Furthermore, according to industry insiders, The industrial and commercial energy storage and residential storage sectors are growing rapidly, with numerous small projects below the megawatt level. Additionally, large investment projects are being accelerated in planning.

From the overseas orders won by Chinese companies,Sunwoda, BYD, CATL, and Hithium, among other companies, have successively secured GWh-level energy storage projects in the Middle East. At the same time, Envision Energy, REPT Battero, Gotion High-tech, Zhongchu New Energy, Narada Power, Canadian Solar, and ChuNeng New Energy, among many other enterprises, have repeatedly won large orders in overseas markets, with many order sizes also exceeding the GWh level, showcasing the strong global competitiveness of China's energy storage industry.

On the other hand,The implementation of the domestic "Document No. 136" is also a key factor driving the surge in demand for energy storage cells. The policy triggered the "531 installation rush," significantly boosting energy storage installations. Data shows that in the first half of this year, the newly installed capacity of new energy storage in China exceeded 55 GWh, representing a year-on-year increase of 76%. The installed capacity reached a record high, and the market-oriented profit model is gradually becoming clear.

"Order surge" is coming

The leading cell manufacturers have reached full production capacity.

Faced with a surge of domestic and international energy storage orders, the energy storage cell market, which was previously in a period of structural overcapacity adjustment, has swiftly shifted this year to a state where "even with extra money, you can't get the goods." The rapid reversal in the industry's supply-demand relationship has far exceeded market expectations in both speed and intensity.

Driven by a surge in orders, domestic energy storage companies have generally entered a full production state, with leading companies facing ongoing capacity constraints. The situation of "one chip being hard to find" has reappeared.From the perspective of capacity and scheduling,According to the information,CATL (Contemporary Amperex Technology Co., Limited)The announced backlog of orders exceeds 48 GWh, with the production schedule arranged until the first quarter of 2026.Haichen Energy StorageAccording to the relevant person in charge, since March this year, its Xiamen and Chongqing bases have been operating at full capacity, with orders scheduled until September and October, and the production plan is very saturated.EVE Energy, REPT BATTERO, Envision EnergyCurrently, the entire industry is experiencing a period of strong supply and demand, with production capacity being a critical challenge. Similarly, the production lines of enterprises continue to operate at high capacity, and new orders must queue and wait.

Meanwhile,Performance reports from multiple battery cell manufacturers also confirm the current booming demand in the energy storage market.According to the financial report data,CATL (Contemporary Amperex Technology Co., Limited)In the first half of the year, the energy storage business revenue reached 28.4 billion yuan, with a gross profit margin of25.52%Significantly higher than its power battery business at 22.41%; capacity utilization rate increased to89.86%Compared to the same period last year, it significantly increased by 13 percentage points, setting a new high among leading manufacturers. It is estimated that its energy storage battery shipments reached...55GWh(Q1 25GWh + Q2 30GWh).

EVE EnergyThe same outstanding performance. In the first half of the year, EVE Energy's energy storage battery shipments reached28.71GWhThe revenue from the energy storage business reached 10.298 billion yuan, marking a year-on-year increase of 32.47%. The data indicates that the energy storage business has become an important driver of overall revenue growth.

Ruipulan JunIt also showed strong momentum in this round of demand explosion. In the first half of the year, its energy storage battery shipments reached...18.87GWhThe revenue from the energy storage business reached 5.083 billion yuan, a year-on-year increase of approximately 58.4%, accounting for 53.6% of its total revenue. This marks the first time that it has surpassed the electric vehicle battery segment to become the company's largest source of income.

Additionally, includingEnvision AESC, BYD, Gotion High-tech, Hithium Energy Storage, Sunwoda, CALB, Penghui EnergyEnterprises also performed impressively, jointly making it to the Top 10 list of global energy storage cell shipments for the first half of 2025 released by the third-party organization InfoLink.It is worth mentioning that,The top ten are all Chinese companies, with a combined market share of91.2%...demonstrating China's absolute dominance in the global energy storage market.

The demand in overseas markets has surged.

From the regional distribution of overseas orders from Chinese enterprises,The performance in the Middle Eastern market is particularly impressive.In the first half of this year, the Middle Eastern market accounted for over 23% of order volumes, becoming the fastest-growing "dark horse" in the global energy storage market.Europe, AustraliaProjects in the traditional energy storage market are still continuously accelerating their implementation; in addition,Emerging markets in Southeast Asia, Africa, and Latin America.It is gradually unleashing its potential and ushering in a wave of large-scale orders, showcasing a diversified market growth pattern.

This trend continued further in the third quarter. For example, Sungrow Power Supply Co., Ltd.Signed2.4GWhA major energy storage deal in Europe, entering the Bulgarian market for the first time.China National Automotive New EnergySigned a memorandum of understanding with India's largest power infrastructure investment trust IndiGrid to supply the latter in 2026-2027.5GWhEnergy storage system products... These orders not only reflect the continuous activity of regional markets but also demonstrate that Chinese companies are constantly expanding the boundaries of emerging markets.

Industry insiders have pointed out that behind the accelerated implementation of such projects is...The continued drive of multiple rigid demands such as grid bottlenecks, electricity price fluctuations, policy subsidies, and energy transition in various regions around the world.Energy storage has shifted from an "option" to a "necessity".From the perspective of overseas market performance,Traditional power systems are increasingly facing bottlenecks, while the construction of new energy sources continues to accelerate, directly driving a significant increase in orders for Chinese energy storage companies, with emerging markets performing particularly well. Moreover, the demand in overseas markets is not only strong, but their profit margins are generally higher than those in the domestic market, offering companies a more considerable profit potential.

However,Be cautious thatDespite frequent orders from overseas markets, small and medium-sized enterprises should still approach going abroad with caution. "Currently, the vast majority of large orders are still concentrated in the hands of leading companies."In the uncertain environment, it is unclear whether small and medium-sized enterprises can seize this opportunity. At least in mature markets in Europe and the United States, the opportunities are already quite limited.Industry insiders admit that, taking Europe as an example, the local market particularly values brand strength and project experience. If a company is not on the list of mainstream suppliers or lacks backing from large projects, it is difficult to gain recognition. Brand building not only takes a long time but also requires continuous financial investment, which poses a significant challenge for small and medium-sized enterprises with limited resources.

In addition, overseas operation and service capabilities have also become key barriers. Markets such as Europe require localized teams to provide 24-hour instant response, including on-site commissioning, installation guidance, and other high-intensity service support. This alone is enough to keep many small and medium-sized enterprises out. This means that behind the current surge of orders, industry resources are rapidly concentrating towards leading companies, and the market landscape is becoming increasingly fragmented.

On the other hand,The concern of "involution" has long been a deep-seated issue troubling the healthy development of the industry.Despite the current "battery cell shortage" phenomenon, the downward trend in prices has not stopped. For example, in the recent bidding for China Energy Engineering Group's 25GWh energy storage system procurement project, the 4-hour energy storage system...0.37 RMB/WhThe marked price is still setting industry records, with a decrease of over 42% compared to the end of 2023.

Despite the current full orders and the high enthusiasm of enterprises for going overseas, relying solely on price competition is no longer sustainable. The industry urgently needs to shift from low-price expansion to building diverse competitiveness such as technological differentiation, brand enhancement, and localized service capabilities to avoid repeating the domestic "increased revenue without increased profit" predicament. How to achieve rational competition and healthy growth amid rapid expansion has become a key issue for the sustainable development of China's energy storage industry.