China drives global surge in battery storage capacity

The International Energy Agency forecasts that worldwide demand for battery‑based energy‑storage systems will rise by more than 70% in 2025, reaching about 330 GWh. China is the primary driver, having installed 18.76 GW of new storage in December 2025 and approaching 150 GW of lithium‑ion capacity in early 2026. A June 2026 report shows that LFP batteries accounted for a record 83.3% of China’s power‑battery installations, underscoring the country’s dominance in this chemistry. Despite the rapid build‑out, under‑utilisation remains a challenge; Ember estimates that more efficient use could have supplied an additional 23 TWh of clean electricity in 2025, enough for roughly five months of Singapore’s consumption. Siming Liu of TrinaSolar noted, “China has built the world’s largest fleet of battery storage in record time, but having batteries is not the same as using them.”

China also commands about 98% of global lithium‑iron‑phosphate (LFP) production capacity, and analysts warn that a similar lead could emerge in emerging sodium‑ion batteries. Projections in a Carnegie Endowment report suggest China’s total battery‑cell capacity could reach at least 5,862 GWh by 2030, roughly three times the combined capacity of OECD economies. These trends highlight China’s pivotal role in shaping the global energy‑storage market and the need for improved integration of storage assets into power systems.