In recent years, Chinese energy storage companies have increasingly expanded their operations overseas. At the same time, China\u2019s battery export policies have undergone significant adjustments: effective April 1, the export tax rebate rate for battery products was reduced from 91% to 61%, and it will be completely phased out starting next year. These policy adjustments serve as both a challenge and a driving force, propelling China\u2019s energy storage industry toward accelerated high-quality development.<\/p>\n\n\n\n
The industry faces short-term pressure, and market concentration is set to increase further. For small and medium-sized enterprises with weak bargaining power and slim profit margins, this adjustment to battery export tax rebates will directly squeeze their room to survive; some companies lacking technological and cost advantages may gradually be forced out of the market. However, for leading companies with strong financial resources, high levels of supply chain integration, and stable overseas distribution channels, this market shakeout will present an opportunity to capture a larger market share, further highlighting the industry\u2019s \u201cwinner-takes-all\u201d trend.<\/p>\n\n\n\n
Policy refinements are driving high-quality development in the energy storage industry. The primary objective of these adjustments is to guide the industry\u2019s transition from scale-driven expansion to value-driven growth. In recent years, the energy storage sector has faced significant homogenized competition, which has hindered the industry\u2019s long-term, steady development. Adjustments to the export tax rebate policy for batteries will encourage companies to achieve reasonable profits by leveraging technological innovation and their full-chain advantages.<\/p>\n\n\n\n
Tight market supply and demand provide a buffer for policy adjustments. Currently, due to the concentrated release of global energy storage demand, coupled with rising prices of key minerals and other factors, the supply and demand for energy storage battery cells have become tight, leading to a price rebound. This is expected to offset, to some extent, the cost pressures resulting from adjustments to battery tax rebates, providing a buffer particularly for leading companies. At the same time, current market conditions have strengthened companies\u2019 bargaining power, enabling them to reasonably pass on cost pressures to downstream players and alleviate pressure on profitability.<\/p>\n\n\n\n
Although short-term profitability is under pressure, this will not fundamentally undermine Chinese companies\u2019 market share globally. On the one hand, China\u2019s energy storage industry boasts a complete supply chain, significant economies of scale, and outstanding delivery capabilities; it will be difficult for overseas markets to establish a viable alternative production system in the short term. On the other hand, global demand for energy storage remains in a phase of rapid growth, and overseas customers continue to rely heavily on stable, cost-effective products. In the long term, as the industry structure optimizes and the competitiveness of high-quality enterprises further improves, the Chinese energy storage industry\u2019s central position in the global market will continue to be consolidated.<\/p>\n\n\n\n
As the global energy transition continues to accelerate, it is opening up vast opportunities in overseas markets for Chinese energy storage companies. After years of development, Chinese companies have established a dominant position in the global battery energy storage market. With end-to-end capabilities spanning cell manufacturing, system integration, and project delivery, they have become key players and reliable suppliers in the global energy transition.<\/p>\n\n\n\n
Looking ahead, Chinese companies can adopt differentiated development strategies based on their unique strengths.<\/p>\n\n\n\n
Leading companies should accelerate their global expansion, strengthen their localized operations, enhance compliance and supply chain coordination, and better integrate into the global market system; At the same time, they should intensify R&D efforts in high-security, long-life, long-duration, and grid-forming energy storage technologies, using product premium pricing to offset cost pressures, and transition from single-product exports to system solutions and integrated energy services to consolidate their global brand advantages.<\/p>\n\n\n\n
Small and medium-sized enterprises should focus on niche markets such as residential and commercial\/industrial energy storage, building differentiated competitive advantages in specific segments; they can also collaborate with industry leaders and overseas distributors to expand into international markets collectively and achieve steady growth.<\/p>\n\n\n\n
Companies focused on overseas markets should prioritize strengthening their compliance frameworks to meet requirements related to international certifications, carbon footprints, and local content, while deepening their engagement with local distribution channels and after-sales services. At the same time, they should strategically expand into diverse regional markets to mitigate risks associated with reliance on a single market, and utilize tools such as long-term contracts and currency hedging to stabilize business outlooks.<\/p>\n\n\n\n
Companies focused on the domestic market should capitalize on opportunities in sectors such as standalone and shared energy storage, and actively participate in the electricity spot market and ancillary services market. At the same time, they should explore application scenarios such as direct green power supply, smart microgrids, and carbon-neutral industrial parks, while continuously optimizing their energy storage business models.<\/p>\n\n\n\n
Overall, while the adjustment to the export tax rebate policy for batteries may cause some short-term pain, it also presents a long-term opportunity for transformation. Only by shifting their focus from scale growth to quality, efficiency, and value enhancement can companies truly seize the opportunities presented by the rapid global growth in energy storage.<\/p>\n\n\n\n
(The authors serve as Executive Vice Chairman of the Zhongguancun Energy Storage Industry Technology Alliance and Deputy Director of the Energy System Analysis Center at the Energy Research Institute of the National Development and Reform Commission, respectively.)<\/p>\n\n\n\n
\u2014 *People\u2019s Daily Overseas Edition*, April 14, 2026<\/p>","protected":false},"excerpt":{"rendered":"
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