China Grid-Scale Battery Market Overview (2025-2035)
The China grid-scale battery market is projected to show robust growth between 2025 and 2035, driven by increasing renewable energy integration, technological advancements, and government-led initiatives targeting carbon neutrality. Major types include lithium-ion, flow, lead-acid, sodium, and nickel-based batteries, deployed across applications such as renewable integration, peak-shaving, frequency regulation, backup power, and grid stabilization. The market structure involves various distribution channels, with leading players such as CATL, BYD, and State Grid Corporation of China shaping the landscape. Demand is spurred by grid modernization, energy storage needs for renewables, and ongoing policy support. The market will further benefit from R&D innovations, localized production, and expansion of high-capacity battery storage systems.
Latest Market Dynamics
Key Drivers
Growing renewable energy installations: China's rapid addition of solar and wind projects requires robust grid-scale battery solutions. For instance, CATL in January 2024 launched large-scale battery storage projects supporting new wind parks.
Government policies and subsidies: Policy support, including the 'Energy Storage Industry Innovation Development Action Plan (2021-2025)', incentivizes grid-scale storage project investments. BYD’s strategic cooperation with multiple provinces in 2024 illustrates direct policy-driven expansion.
Key Trends
Rise of lithium-ion and sodium-based batteries: Lithium-ion dominates, but sodium-based batteries are gaining traction due to resource abundance and cost benefits. CATL announced its first sodium-ion grid project in June 2024.
Integrated energy storage systems adoption: State Grid Corporation of China launched integrated projects combining solar, wind, and battery storage to enhance grid flexibility in 2024.
Key Opportunities
Expansion of renewables integration: Grid-scale storage presents opportunity for balancing supply-demand and minimizing curtailment, as seen in Shanghai Electric’s recent large capacity battery deployment.
Urban microgrid projects: Strong pipeline for microgrid storage, with EVE Energy securing new city-level contracts in Q2 2024.
Key Challenges
Grid stability and safety issues: Incidents of battery overheating and fire risks, as addressed by Narada Power Source with recent advanced safety systems, highlight ongoing technical challenges.
High capital cost: Despite falling battery costs, initial investment remains high. Shoto Group’s financial results in May 2024 cited upfront cost barriers for smaller utility clients.
Key Restraints
Raw material supply volatility: Fluctuations in lithium supply and prices, as faced by China BAK Battery Co. in early 2024, create uncertainties.
Complex regulatory approval processes: Prolonged permitting, as experienced by Rongke Power’s Dalian flow battery project in early 2024, slows deployment pace.
China Grid-Scale Battery Market Share (%) by Type, 2025
Lithium-ion batteries lead in market share due to superior performance, higher cycle life, and continuous cost reductions fueled by scale and ongoing innovation. Sodium-based batteries are seeing rapid adoption, thanks to abundant resources and emerging commercial deployments. Flow batteries are making steady progress, especially for large-scale, long-duration applications, while lead-acid and nickel-based batteries maintain niche roles. The competitive landscape is defined by ongoing R&D investment and the rollout of advanced chemistries tailored to utility needs.
China Grid-Scale Battery Market Share (%) by Application, 2025
Renewable integration is the leading application area, reflecting China’s aggressive transition towards solar and wind power. Peak shaving and frequency regulation are also significant, as grid operators focus on balancing energy supply, reducing operational costs, and improving reliability. Backup power and grid stabilization account for notable shares, especially with government targets to enhance power system resilience. The market is moving towards multi-use storage assets as project developers seek to maximize economic returns.
China Grid-Scale Battery Market Revenue (USD Million), 2020-2035
The market is projected to grow from USD 2,230 Million in 2020 to USD 12,700 Million by 2035. The most rapid acceleration occurs post-2025, as government targets drive mass deployment of stationary battery systems. Large-scale infrastructure rollouts across China support steady year-on-year growth, with revenue growth further bolstered by falling battery costs, innovation in storage duration technologies, and surging grid modernization investments. Leading Chinese companies are leveraging new chemistries and high-volume manufacturing to capture revenue share.
China Grid-Scale Battery Market YOY Growth (%), 2020-2035
The market is expected to experience double-digit compounded annual growth, peaking around 2025-2028 in response to enhanced government incentives and ongoing grid upgrades. Year-on-year growth rates may exceed 18% through early periods, moderating to 9-11% after 2030 as the market matures and base effects take hold. The industry's cyclical surges align with key national programs and renewable project rollouts, yet robust demand fundamentals sustain above-global-average expansion rates.
China Grid-Scale Battery Market by Regions Share (%), 2025
East China, encompassing provinces like Jiangsu, Zhejiang, and Shanghai, dominates grid-scale battery deployments due to advanced power grid infrastructure and leading renewable penetration. North China and South China follow, driven by large solar/wind projects and strong provincial support. The Western region is gaining share with new renewables but currently trails in absolute installations owing to grid and economic constraints. Regional demand differences are influenced by energy policy, renewable mix, and utility investment patterns.
China Grid-Scale Battery Market Player Shares (%), 2025
CATL, BYD, and State Grid Corporation of China are the dominant players with their extensive battery portfolios, project experience, and integrated supply chains. Their leadership is reinforced by strategic partnerships and first-mover advantages in state-supported pilot programs. Other noteworthy players include Shanghai Electric, Narada Power, and EVE Energy, each focusing on specific technology niches or regional markets.
China Grid-Scale Battery Market Buyers Share (%), 2025
Utilities represent the majority of buyers, underlining the central role of the state grid and power companies in storage deployment. EPC contractors and system integrators are responsible for a growing share as commercial and industrial users adopt grid-scale storage for microgrids, while direct large-scale buyers begin to emerge as corporates participate in new energy projects.
Study Coverage
Metrics
Details
Years
2020-2035
Base Year
2025
Market Size
Revenue (USD Million)
Regions
East China, North China, South China, West China
Segments
By Type (Lithium-ion Batteries, Flow Batteries, Lead-acid Batteries, Sodium-based Batteries, Nickel-based Batteries, Others), By Application (Renewable Integration, Peak Shaving, Frequency Regulation, Backup Power, Grid Stabilization, Others), By Distribution Channels (Direct Sales, Distributors, System Integrators, EPC Contractors, Utilities, Others), By Technology (Advanced Lead-acid, Lithium-ion, Flow Battery, Sodium-based, Nickel-based, Others), By Organization Size (Small, Medium, Large)
June 2024: CATL launched the first commercial grid-scale sodium-ion battery storage project in Shandong province, targeting lower-cost energy storage solutions.
July 2024: BYD signed a cooperation agreement with Guangdong Province to deploy 2 GWh of grid-scale battery storage by 2026.
July 2024: State Grid Corporation of China inaugurated an integrated solar, wind, and battery storage project in Inner Mongolia.
August 2024: Narada Power Source unveiled an advanced safety management system to prevent thermal runaway in utility-scale battery deployments.
August 2024: EVE Energy secured a contract to supply battery storage systems for a smart microgrid project in Hainan province.
Frequently Asked Questions
About the Author
Clara
Senior Market Research Analyst
Clara is a Senior Market Research Analyst specializing in market research, industry analysis, and business consulting across Semiconductor & Electronics. Clara brings a commercially grounded perspective to sectors shaped by changing demand, innovation, and competitive dynamics, helping turn complex market trends into clear strategic insights for business decision-makers. With 10+ years of experience across research, analytics, and strategic advisory roles, Clara has helped organizations translate data into actionable growth strategies.
