Chinese Energy Storage Enterprises Accelerate Overseas Expansion Amid Energy Security and Low-Carbon Transition

Against the backdrop of intertwined energy security and low-carbon transition, Chinese energy storage enterprises are accelerating their overseas expansion, with a shift from simple product export to in-depth globalisation involving capacity, technology and standard co-output. Emerging markets such as the Middle East and Latin America have become new drivers of global energy storage growth, while enterprises also face challenges in balancing scale and profitability.

Since the start of this year, leading Chinese energy storage firms have stepped up efforts to build local factories overseas amid the accelerated restructuring of the global energy storage industrial chain. In Europe, Haichen Energy Storage signed a letter of intent with the Spanish government in March, planning to invest about 400 million euros (approximately 3.181 billion yuan) in a large-scale battery and energy storage system manufacturing plant, which will focus on LFP battery cells and containerised energy storage systems and is scheduled to start operation in 2027.

In February, Sungrow Power Supply announced its first European manufacturing plant with a total investment of 230 million euros (around 1.829 billion yuan), which will have an annual production capacity of 20GW photovoltaic inverters and 12.5GWh energy storage systems. Earlier in January, China Innovation Aviation signed an investment contract with the Portuguese government to build a lithium battery factory in Sines, Portugal, with a total investment of 2.067 billion euros (about 16.44 billion yuan) and an expected full operation in 2028, with 15GWh of energy storage-related capacity.

In emerging markets including the Middle East, Southeast Asia and Africa, Sungrow Power Supply signed a strategic cooperation agreement with the Egyptian government and Norwegian renewable energy company Scatec in January to advance a clean energy project with a total investment exceeding 1.8 billion US dollars, including a factory invested by Sungrow in the Suez Canal Economic Zone. According to Sungrow’s annual report, its energy storage system revenue accounted for 41.81% in 2025, surpassing its power electronic conversion equipment such as photovoltaic inverters for the first time, with overseas revenue reaching 53.992 billion yuan, a year-on-year increase of 48.76%.

Huang Feng, President of Chunergy New Energy, said, “In the next 2-3 years, we will deepen our presence in foreign markets to achieve global development. In addition to energy storage, the company will also expand into other power products.” Chunergy signed a strategic cooperation agreement with Egypt’s WeaCan and Kemet in January, planning to supply a total of 6GWh of energy storage system products to Egypt in phases and build an energy storage battery factory with Kemet, with a total investment of 200 million US dollars and an annual capacity of 5GWh.

Overseas orders of Chinese energy storage enterprises have maintained strong growth momentum. According to incomplete statistics from CNESA DataLink global energy storage database, Chinese enterprises added 366GWh of overseas orders in 2025, a year-on-year increase of 144%, covering more than 60 countries and regions. Data from the General Administration of Customs shows that China’s inverter exports reached 1.66 billion US dollars in January-February this year, a year-on-year increase of 56%.

Chen Haisheng, Chairman of the China Energy Storage Alliance and Director of the Institute of Engineering Thermophysics of the Chinese Academy of Sciences, stated that by the end of 2025, the global cumulative installed capacity of operational power energy storage reached 496.2GW, with an annual growth rate of 33.4%. Emerging markets are becoming new drivers, with demand boosted by large-scale new energy base construction in the Middle East and power grid stability needs in emerging Asian markets.

While expanding overseas, Chinese enterprises also face challenges. Canadian Solar said it focuses on high-margin markets such as Japan, Europe and Canada, with its energy storage subsidiary e-STORAGE holding signed orders worth 3.6 billion US dollars by the end of 2025. Sungrow noted that it locks in cell prices through long-term cooperation with core suppliers and reduces costs via technological innovation to maintain stable overseas profitability. Pylon Technologies admitted that changes in import policies and product certification requirements in target markets may bring risks, and it will strengthen local organisational structures to mitigate trade barriers.

Chinese energy storage enterprises are advancing their global layout in a steady manner, leveraging their technological and industrial chain advantages to seize opportunities in the global market. Leading firms are focusing on high-margin segments and optimizing local strategies to adapt to diverse market demands, laying a solid foundation for in-depth globalisation.