A Review of the Development of the Energy Storage Industry in China: Challenges and Opportunities

Abstract

As the global carbon neutrality process accelerates and energy transition continues, the energy storage industry is experiencing unprecedented growth worldwide, emerging as a key strategic sector. Focusing on China’s energy storage industry, this paper systematically reviews its development trajectory and current status, examines its diverse applications across the power supply and grid, including for users, and explores influencing factors such as energy price fluctuations, policy support, and market mechanisms. Furthermore, this paper assesses the industry’s profound economic and social impacts, highlighting its crucial role in advancing energy structure transformation and fostering the new energy vehicle sector. Despite challenges such as structural overcapacity, high storage costs, and an underdeveloped power market, continuous technological advancements, rapid expansion of new energy capacity, and strengthened policy support present numerous growth opportunities for the industry. This paper reviews the existing literature and offers policy recommendations that include constructing a more comprehensive policy framework, fostering the energy storage recycling market, and leveraging AI in energy storage R&D.