Wedoany.com Report-Aug. 22, China’s new energy storage sector reached a significant milestone in the first half of 2025, according to a report released by the China Energy Storage Alliance (CNESA) at the Western Energy Storage Forum in Hohhot, Inner Mongolia, earlier this week.

The report shows that by the end of June, China’s total energy storage capacity had reached 164.3 GW, an increase of 59% compared with the same period in 2024. Among this, cumulative new energy storage capacity, mainly consisting of lithium-ion battery energy storage systems, exceeded 100 GW for the first time, reaching 101.3 GW. This represents a 110% year-on-year increase, highlighting rapid development and large-scale application of new energy storage technologies across the country.

CNESA’s findings also reflect a structural transformation in the country’s energy storage mix. At the conclusion of the last five-year period, pumped hydro made up 89.3% of total capacity. By mid-2025, this share had dropped to 37.4%. In contrast, lithium-ion battery storage now accounts for 59.9% of the total, marking a decisive shift in the industry’s technology route.

According to the report, the transition demonstrates how China’s energy storage development is moving from a single-track model dominated by pumped hydro to a more diversified and multi-path approach. The rise of lithium-ion battery energy storage systems is regarded as a major driver of this shift, supported by technological progress, expanding industrial chains, and growing demand from power systems for flexible and reliable storage solutions.

The CNESA report notes that this rapid growth provides strong support for China’s energy transition goals, enabling more effective integration of renewable power generation such as wind and solar. By increasing storage capacity and diversifying technology choices, the sector is improving the overall stability of the grid while enhancing energy security and efficiency.

The Western Energy Storage Forum in Hohhot provided a platform for industry representatives, experts, and policymakers to discuss these changes and future development trends. Participants focused on how to further advance industrial standards, encourage innovation in storage technologies, and accelerate the construction of supporting infrastructure.

CNESA emphasized that China’s energy storage market is now at a stage of accelerated growth and technological upgrading. The report concludes that the country is entering a new era of energy storage development, characterized by greater balance between traditional and emerging technologies and by expanding opportunities for new energy storage applications in both utility-scale and distributed systems.

This progress highlights the importance of new energy storage in supporting China’s evolving energy system, with lithium-ion technology playing a central role in shaping the future direction of the sector.