China's 'New Type' Power Storage Now Half of Global Capacity

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Written by Paul Wiseman for IIR News Intelligence (Sugar Land, Texas)

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Summary

China's capacity for "new type," or non-hydro, storage grew 84% in 2025. Total energy storage capacity, much of which is lithium-ion batteries, reached 213.3 GW.

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Storage Is Now a Major Grid Player

China installed 136 gigawatts (GW) of what it calls "new type" energy-storage system capacity in 2025, an 84% growth rate. Much of that was for battery energy-storage systems (BESS), although it also includes compressed air, flywheels and thermal storage.

That total is according to data released in a report from China's National Energy Administration (NEA) this week. Titled "China New Energy Storage Development Report (2026)," it says the 136 GW represents a fourfold increase over 2020 levels. China also surpassed 100 GW total storage in this category for the first time.

Industrial Info Resources is tracking 441 BESS projects in China, with TIV of more than US$55 billion. Overall energy storage project tracking in China comes in at 512, with total investment value (TIV) of more than US$115 billion.

Industrial Info Resources offers more information on these developments in its Global Market Intelligence (GMI) Power Project Database, where readers can find details--including construction schedules, investment values and necessary equipment--in lists of reports for BESS projects and broader energy-storage projects.

Total power-sector storage capacity hit 213.3 GW in 2025, up 54% compared to 2024, per data from the China Energy Storage Alliance (CNESA) released in February. About 31% of that growth was from traditional pumped-hydro, CNESA said, with new-type storage accounting for just over two-thirds at 67.9%, about 144.7 GW according to that report.

The new-type number from CNESA, 144.7 GW, is at variance from the NEA's 136 GW count released this week.

Across the World, It's Battery Up!

Growth is continuing in 2026. Sorting out China's BESS storage from the rest, ember-energy.org says that by Q1 of this year, "the country has installed 155.2 GW/400.8 GWh of 'new energy storage', 149.8 GW of which consists of lithium-ion batteries."

At second-BESS in this department is the U.S., which has seen major growth in the last three years. Readers can learn more from Industrial Info Resources' August 13, 2026, article - EIA: U.S. BESS Growth Averaged 70% Last Three Years.

Growth is happening worldwide. According to the International Energy Agency (IEA)'s Global Energy Review 2026: "In 2025, 108 GW of new battery-storage capacity was deployed worldwide, 40% more than in 2024. Installed capacity is now eleven times higher than in 2021. Lithium iron phosphate (LFP) batteries now account for around 90% of deployments."

By the Numbers

• 213.3 GW: Total of China's energy storage in 2025
• 54%: Amount of year-over-year growth
• All 10: Number of top spots held by Chinese companies in amount of world BESS cell shipments in 2025

China's BESS Practices Dominate Globe

The processing and shipping of lithium battery components is another strong point for China, as it accounts for 44% of the global battery mineral trade, according to the U.S. Energy Information Administration (EIA).

According to solarplaza.com, Chinese companies accounted for 90% of global BESS cell shipments in 2025," and were home to all of the top ten companies.

In a December 2025 report, the EIA said Chinese companies are deeply invested in mining projects in Argentina, part of the "lithium triangle" in that country, Bolivia and Chile, that contains 50% of the world's known lithium reserves.

China produces its own supplies of natural graphite, mining 79% of the world's supply, at 1.27 million short tons in 2024, according to the U.S. Geological Survey."

The EIA continued, "China accounted for 46% of the world's raw battery mineral import trade in 2023, according to the UN Comtrade data. Australia, the world's largest lithium producer, sent almost all its exports to China alone."

In 2023, China controlled about 85% of the dollar value of the world's battery cell production capacity.

Battery Dominance

This dominance is not going unnoticed around the world, and governments are beginning to invest in reducing the gap. The U.S. energy storage sector has committed $100 billion by 2030 to localizing the BESS supply chain, according to the American Clean Power Association.

The EU, South Korea and Japan are growing manufacturing capacity as well. In 2025 EU's capacity was up 50% year-over-year, according to the IEA. But for the near future, China's BESS lead would appear to be extremely secure, as 50% growth for a nation already leading the world amounts to much more absolute capacity than 50% for someone with far less capacity to start with.

Key Takeaways
China leads the world in all types of energy storage, including BESS--and also is at the top in growth, meaning its lead is not in jeopardy any time soon. It also dominates in processing of battery minerals and in exporting of BESS components.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news, and analysis on the industrial process, manufacturing, and energy-related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified, and verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).