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China throws the switch on battery buildout ‘equal to 10 times US capacity in 2025’

China’s battery expansion plans highlight a widening gap with the US, as renewable energy demand fuels rapid growth in storage systems

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An employee works on the production line at FoxESS, a global leader in the development of inverter and energy storage solutions. Photo: Getty Images
Daniel Renin Shanghai
China’s leading battery makers have unveiled plans to add more than 600 gigawatt-hours (GWh) of new production capacity for the energy storage system (ESS) market in just the first two months of 2026, underscoring surging global demand for renewable energy infrastructure.
The planned facilities – spanning major players from Contemporary Amperex Technology Ltd (CATL) to Gotion High-tech – amount to roughly 10 times the 58GWh of total capacity installed across the US in 2025.

According to the GGII Energy Storage Research Institute, a Shenzhen-based consultancy, 19 mainland Chinese battery producers it tracks were set to invest a combined 180 billion yuan (US$26.3 billion) to build new lithium-ion battery factories.

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Once completed – with some facilities due to come online in late 2026 – the projects will add up to 900GWh of annual production capacity. About 70 per cent of this would be dedicated to the ESS market, with the remaining 30 per cent serving the electric vehicle (EV) sector, GGII said in a report released on Wednesday.

ESS comprises batteries alongside battery management, power conversion and control systems that store excess energy generated from renewable sources, while providing backup power during outages and helping stabilise electricity grids.

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One GWh of battery capacity can supply around 750,000 households for a year.

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