Energy storage projects "collectively stranded," industry reshuffle accelerates!

Recently, a report released by the market analysis organization Clean Energy Associates (CEA) shows that the U.S. energy storage manufacturing industry is experiencing a "cold wave" impact due to new tariffs and policy adjustments.

The report points out that the United States has implemented multiple new tariffs on energy storage batteries and components, directly resulting in a combined impact on three American companies of approximately...21GWhBattery storage capacity was canceled this year; an additional five companies postponed a total of over...19GWhThe plan for production capacity implementation. The report specifically emphasizes that,The main reason is the United States' high dependence on Chinese battery materials (accounting for over 60%).

01

Energy storage projects are collectively experiencing an "adjustment wave."

In fact, not only in the United States, but globally, after several years of rapid development, the energy storage industry has seen its market share quietly concentrate towards leading quality enterprises following several rounds of eliminations. China is no exception, with leading lithium battery companies like CATL, EVE Energy, Sunwoda, and Desay Battery nearing full production capacity, while small and medium-sized enterprises in the energy storage supply chain, lacking core competitiveness and policy adaptation capabilities, are undergoing a new round of market reshuffling.

Recently, there has been a lot of attention on two solid-state battery projects that were terminated due to the "explosion" of a partner. This news has been widely discussed in the industry. Gaoneng Times had its controlling shareholder's shares frozen, resulting in Anfu Technology.The 300MWh sulfide all-solid-state battery pilot project and the solid-state battery cooperation plan between Lihu Co., Ltd. and High Energy Era have been announced to be terminated.

Among them, it is planned to invest 50 million yuan to build a 300MWh sulfide all-solid-state battery pilot production line project.Plans to complete the delivery of home energy storage products by the end of 2027 and the delivery of large-scale energy storage equipment by the end of 2030.However,The project was terminated quietly just four months after signing, still in its initial stage, and even before the first round of investment was completed.

This is not an isolated case. Recently, many high-profile energy storage "star projects" have been reported to be adjusted, delayed, or terminated one after another. There have even been extreme cases where an energy storage project filing was withdrawn just one week after being registered.

According to Battery China, recently, the leading cathode material company...Wanrun New EnergyIt announced that as early as July 2023, it had signed a "Letter of Intent for Investment" with the Wuhan Chemical Industry Park Management Committee, proposing to invest approximately 5 billion RMB to build an integrated industrial base. This base would include the research and mass production of key materials such as lithium-ion batteries, sodium-ion batteries, solid-state batteries, and hydrogen storage. However, as of today, the two-year period has ended, and its official announcement shows that the project...Up to now, it has not been carried out, and there are no further plans to proceed. After mutual communication and confirmation, it will not be renewed, and the agreement will be automatically terminated.

The original vision of the project was grand, covering multiple cutting-edge technology directions, but ultimately it "Make a prudent decision based on the market environment, the company's development strategy, and the actual situation."——Terminate the investment project."

According to public information, since the beginning of this year, more than 15 energy storage capacity and power station projects have been postponed, terminated, or adjusted. The capacity-related projects involve technologies such as lithium batteries, sodium batteries, solid-state batteries, energy storage inverters, and system integration.

Projects that are relatively well-known and have a high level of public attention, such asHaisidaIn June, the "30GWh Sodium-ion and Lithium-ion Battery and System Production Base Project" with an investment of 10.2 billion yuan was terminated.Changying PrecisionThe "Changzhou Power and Energy Storage Battery Components Project" has been postponed for two years; in April,Homae Co., Ltd.Announce the proposed termination of the 88.77 million yuan energy storage inverter industrialization project.GaoLan CorporationDecide to terminate the investment in the "All-Scenario Thermal Management R&D and High-end Manufacturing Project for Energy Storage" worth 1 billion yuan.Kexin TechnologyAnnounced the delay of its 360 million RMB "Energy Storage Lithium Battery System R&D and Industrialization Project"...

From the perspective of project construction entitiesCross-industry enterprises and industrial chain extension projects have seen significant adjustments, and some companies deeply engaged in the energy storage sector have also undergone strategic adjustments. It is regrettable that although many projects received considerable attention at the initial stage, they eventually exited quietly.Many projects have even come to a standstill at a "zero progress" status, with no implementation or funding input.

02

The Story Behind the Project's Failure

A series of energy storage projects collectively entering an "adjustment wave" is the result of multiple factors combined. It also reflects that the entire industry is gradually shifting from "wild expansion" to a rational development phase centered on technological iteration, market differentiation, and policy restructuring.

The most direct reason is the impact of policy changes.The "Document No. 136" removes the mandatory reserve requirement, accelerates the construction of the electricity spot market, and promotes high-quality development of the industry through a market-based pricing mechanism.The demand for energy storage is shifting to an endogenous market-driven force.This has caused companies that previously relied on policy incentives to blindly expand capacity to lower their expectations for future market demand. They find it difficult to calculate the return period of projects and are hesitant to proceed with projects rashly. For example, the adjustments in the aforementioned energy storage projects of Wanrun New Energy and Haishida have all mentioned this.Changes in the macro market environment.

Furthermore, the pressure brought by the rapid iteration of new technologies.Energy storage products are rapidly iterating from raw materials, manufacturing processes, battery technology to system integration.For example, taking energy storage cells,The 314Ah energy storage dedicated cell has just gained a foothold, and the development and mass production of the next generation 500Ah+ larger capacity cells are already in full swing. Some companies, due to insufficient research and development investment, find their originally planned expansion products are no longer able to meet market demand, leading them to reassess their technological routes to adjust project construction. For example, the delay of Kexin Technology's "Energy Storage Lithium Battery System R&D and Industrialization Project" in April this year.Technology "outdated"This is one of the important reasons.

Third, project financing has become more difficult, and companies are becoming cautious.The current energy storage industry is stabilizing, and companies' financing channels are narrowing. The energy storage market, which attracted various capital inflows over the past few years, has noticeably cooled in the primary market in recent years. Fundraising cycles have lengthened, and it has become difficult to secure funds for project advancement. Data shows that in 2024, the primary market financing amount for China's new energy industry decreased by 30% year-on-year. For companies involved in energy storage, the tightening financing environment and cash flow pressures have led them to return to rationality.

It is not difficult to see that the current energy storage industry is still accelerating its "reshuffling," driving a reconstruction of the energy storage market structure. In the short term, the "collective halt" of energy storage projects may affect industry confidence, but the clearing out of outdated production capacity will further promote the industry towards a healthier and more rational development. At the same time, this serves as a warning to cross-industry enterprises and small and medium-sized enterprises that lack core competitiveness, advising them to avoid blindly following trends and to be more cautious in cross-industry ventures.