China's new energy storage sector continued its strong growth in H1 2025, with installed capacity reaching 94.91 GW and 222 million kWh, up about 29% from the end of 2024. By the end of 2024, China had completed and commissioned 73.76 GW/168 GWh of new energy storage capacity with the addition of 42.37 GW/101 GWh during the year, accounting for over 40% of global installed capacity, announced the country’s National Energy Administration (NEA). 

More than 80% of the newly installed energy storage capacity in H1 2025 was reported from North China, Northwest China, and South China, accounting for 29.7%, 25.7%, and 15.4% of the total added. 

Inner Mongolia and Xinjiang regions exceeded 10 GW of installed capacity each, followed by Shandong, Jiangsu, and Ningxia exceeding 5 GW each. A total of 13 provinces and regions, including Hebei, Zhejiang, Yunnan, Gansu, Guangdong, Anhui, Guangxi, Shanxi, Hunan, Henan, Hubei, Qinghai, and Guizhou, installed more than 2 GW each. This shows the widespread growth of storage in the country. 

The NEA released these figures alongside the China New Energy Storage Development Report (2025), highlighting rapid industry progress as its expansion promotes the integration of renewable energy in the country.  

China had established the basic framework of its new energy storage development policy under the 14th Five-Year Plan. As it enters its 15th Five-Year Plan starting 2026, the NEA has launched the new report to guide the industry towards a streamlined and sustainable development. It will also support the implementation of the country’s dual carbon strategy under which China targets to achieve carbon peaking by 2030, and carbon neutrality by 2060 (see China Aims To Hit CO2 Peak Before 2030).  

As per the report, lithium-ion is used the most for storage, but new technologies, like metal-air batteries, compressed air, and intelligent control systems, are gaining ground. 

New energy storage costs in China dropped sharply in 2024. Lithium-ion battery project costs fell, with EPC prices down 25% and system prices down 44% from 2023. Falling lithium carbonate prices helped reduce battery cell costs. Vanadium flow battery costs also declined by about 20% YoY for the same project size. 

The NEA believes the report will strengthen the energy storage strategy by advancing technology innovation and improving management systems. Expansion of energy storage will also be crucial for the smooth integration of renewable energy in China, especially for solar PV. 

China has already achieved its 1.2 TW combined solar and wind energy target for 2030 within 2024, and is en route to expanding it further, having installed over 212 GW solar PV at the end of June 2025 (see China Hits 2030 Wind & Solar PV Capacity Target 6 Years Earlier). The country’s national solar PV association CPIA had earlier this year forecast a slowdown in China’s annual PV installations, fearing the lack of grid capacity, among other factors. However, 5M 2025 rush prompted it to raise the projections for 2025 up to 300 GW AC, compared to over 277 GW installed in 2024, which is still lower than 380 GW AC the State Grid energy Research Institute’s 380 GW AC forecast for this market (see CPIA Revises 2025 China Solar Projections Up To 300 GW AC). 

The complete China New Energy Storage Development Report (2025) is available for free download on the NEA’s website.