According to the latest research report released by CSI Securities, the growth rate of newly installed energy storage capacity in China is projected to double by 2026, heralding the dawn of a new era for the lithium battery sector. This growth trajectory is underpinned by a confluence of factors, including a notable uptick in tender volumes, robust investment from social capital, and enhanced economic feasibility. Data reveals that from January to September 2025, the tender volume for domestic energy storage projects soared to 255.8 GWh, marking a substantial year-on-year increase of 97.7%. Monthly growth rates remained impressively high, exceeding 75% from June through September.

At the policy front, several provinces have instituted capacity-based electricity pricing and compensation frameworks. Consequently, the internal rate of return (IRR) for energy storage projects in regions like Inner Mongolia, Shandong, and Hebei has surged to 15%, with most provinces witnessing IRRs exceeding 8%. Projections indicate that by 2026, the overall demand for lithium batteries will surpass 2,700 GWh, reflecting a year-on-year increase of over 30%, with energy storage batteries alone accounting for more than 900 GWh of this demand.

Investment opportunities are particularly pronounced in the energy storage batteries, system integration, and PCS (Power Conversion System) segments. The battery sector is poised for price hikes owing to supply constraints, while leading firms in the system integration domain are experiencing full order books and significant earnings flexibility.