China's Energy Storage Giants Ride Wave of Domestic Reforms and Global Data Center Demand
December 22, 2025
A confluence of domestic policy shifts and surging international demand is fueling an unprecedented expansion for China's energy storage sector, solidifying its pivotal role in the global power infrastructure. The sector's growth is critical for integrating renewable energy and ensuring the relentless power requirements of modern technologies, particularly the world's rapidly expanding artificial intelligence data centers.
The catalyst for this boom is a significant overhaul of China's electricity market, which has improved the financial viability of large-scale power storage projects. This domestic tailwind arrives simultaneously with a surge in global demand for backup power solutions, creating a perfect storm of opportunity. Chinese manufacturers, already global leaders, are capitalizing on this dual momentum.
Industry analysis indicates Chinese firms are projected to increase their global shipments of lithium-ion battery cells for energy storage systems by a staggering 75% this year alone. This export drive is part of a broader trade phenomenon, with the country having exported over $65 billion worth of energy storage and electric vehicle batteries in 2025. This massive financial footprint cements China's dominance in a sector that is becoming indispensable for stabilizing power grids reliant on intermittent wind and solar sources and for keeping mission-critical AI data centers online without interruption.
The implications of this growth extend far beyond national borders. As data center construction accelerates worldwide to support AI and cloud computing, reliable and scalable energy storage becomes a non-negotiable component of infrastructure planning. China's capacity to supply this technology at scale positions it as a central player in shaping the resilience and sustainability of the global digital economy for years to come.
Source: japantimes
China's Energy Storage Giants Ride Wave of Domestic Reforms and Global Data Center Demand
