Energy Storage Cells in Short Supply, Related Concept Stocks Surge Collectively

On the news front, according to a CCTV Finance report, the demand for energy storage cells in mainland China is currently very strong. Leading battery companies have stated that their factories are operating at full capacity, with some orders scheduled until early next year.

The "Special Action Plan for Large-Scale Construction of New Energy Storage (2025-2027)" recently issued by the National Development and Reform Commission and the National Energy Administration sets a target: by 2027, China's installed capacity of new energy storage will reach more than 180 million kilowatts, which is expected to drive approximately 250 billion yuan in new project investment. The technical route for new energy storage will still predominantly be lithium-ion battery storage, while various technical routes and application scenarios will be further enriched, cultivating a number of pilot application projects and creating a set of typical application scenarios.

It is worth mentioning that the domestic energy storage market maintained high prosperity in the first half of this year. According to data from the China Energy Storage Alliance (CNESA), as of the first half of 2025, newly operational new energy storage projects in China reached 56.12 GWh, a year-on-year increase of 68%.

A research report from China Securities (CSC) pointed out that domestic energy storage demand has exceeded expectations since the beginning of this year. The core drivers include the comprehensive entry of new energy into the market, which has widened the peak-valley electricity price difference, coupled with the introduction of capacity electricity price policies, promoting the increase in the Internal Rate of Return (IRR) for energy storage. The driving force for energy storage demand is rapidly shifting from mandatory allocation for new energy to economic incentives. In overseas markets, demand outside the US maintains rapid growth. The core restrictions of the US "Big and Beautiful" act target projects commencing after 2026, and thus are expected to have a limited impact on installation-side demand. In the lithium battery sector, the logic of simultaneous volume and profit increase in the industrial chain, driven by stronger-than-expected energy storage demand, continues to materialize.

CSC stated that it continues to be optimistic about the rising prosperity of the energy storage and lithium battery sectors. The current core issue is whether the sustainability of energy storage demand can lead to further upward revisions of the 2026 demand growth expectation beyond the current 20%. Key points to watch include energy storage tenders in the fourth quarter, battery manufacturers' procurement expectations by the end of November, and the 2026 electric vehicle trade-in policy along with lithium battery production schedules.