Central China: Rapid development of new energy storage industry leading global growth in China.

Central China released a research report stating that the global and domestic new energy storage capacity has achieved rapid growth in recent years. Industry policies continue to strengthen, with multiple technological pathways developing simultaneously. Among them, lithium batteries dominate the field of electrochemical energy storage, with flow batteries experiencing rapid growth. Regions like Henan Province in China are also actively introducing measures to promote the large-scale development of energy storage, with clear targets and an industrial layout centered around lithium iron phosphate batteries and diverse technologies. Key points from Central China include: Overview of the new energy storage industry The application of new energy storage is divided into three main scenarios: power generation-side storage, transmission and distribution-side storage, and user-side storage. By the end of 2024, the global new energy storage installed capacity had increased by 74.1GW/177.8GWh, representing a year-on-year growth of 62.5% and 61.9% respectively. In China, the newly added installed capacity of new energy storage reached 43.7GW/109.8GWh, with a year-on-year growth of 103% and 136%. According to energy storage principles, it can be mainly categorized into mechanical energy storage and electrochemical energy storage, with pumped hydro storage being the most mature technology. Electrochemical energy storage includes lithium-ion batteries, lead-acid batteries, and flow batteries. Policies in the new energy storage industry Since 2021, various departments of the central government have issued a series of policy documents to encourage diverse technological development and regulate industry management in order to lay the foundation for the development of energy storage. Among them, in 2025, the National Development and Reform Commission and other departments successively introduced a series of heavyweight policies to accelerate the development of new energy storage, including the "Action Plan for High-Quality Development of the New Energy Storage Manufacturing Industry" and the "Special Action Plan for Large-Scale Construction of New Energy Storage (2025-2027)". Significant advantages of lithium batteries in electrochemical energy storage In the first three quarters of 2025, China's energy storage lithium battery shipments reached 430GWh, with a year-on-year growth of 99.07%. It is expected that lithium batteries will continue to dominate in new energy storage technology, with their technology continuously iterating and large-capacity cells becoming more widespread, while overseas demand for energy storage lithium batteries continues to grow rapidly. In 2024, China's flow battery shipments were around 0.7GW, with an expected increase to 20GW by 2030; the cost of flow batteries will further decrease, and flow technology will continue to diversify, with an overall growth in market size during the 14th five-year plan. In 2024, China's sodium-ion battery shipments were around 3.7GWh, with a year-on-year growth of 428%, and it is expected that the cost of sodium batteries will further decrease, their applications will become more diverse, and their performance will improve. Policies and industrial overview of energy storage in Henan Province In June 2023, the General Office of the People's Government of Henan Province issued the "Implementation Opinions on Accelerating the Development of New Energy Storage", which supports the development of lithium batteries, sodium batteries, flow batteries, and compressed air energy storage technology. In October 2025, the Provincial Development and Reform Commission published the "Several Measures to Promote the High-Quality Development of New Energy Storage in Henan Province (Draft for Soliciting Opinions)", with the goal of achieving large-scale development of new energy storage by 2030. The industry in Henan Province mainly focuses on lithium iron phosphate batteries, while actively developing sodium batteries, all-vanadium flow batteries, and other new energy storage technologies. Some of the key companies in the energy storage industry include: Do-Fluoride New Materials, Henan Yicheng New Energy, Huiqiang New Materials, LB Group Co., Ltd., and Penghui Power. Risk Warning: Industry policy implementation falls short of expectations; intensified industry competition; rapid technological iterations; increased international trade barriers.