China's added battery storage installations tripled North America's in 2025

China's sharp expansion of its battery energy storage capacity in recent years, as part of the government’s broader push to scale up renewable energy, has been widely documented, yet newly released data show the extent of that scale, three times outpacing those in another major market, North America.

China added a record 174.19 gigawatt-hours (GWh) of new energy storage capacity last year, up 40% from 123.94 GWh in 2024, according to data from Benchmark Mineral Intelligence cited by Nikkei Asia. The increase means China accounted for more than half of the 315 GWh of battery energy storage projects installed globally during the year.

The rapid expansion is being driven by Beijing’s efforts to support the efficient use of renewable electricity, particularly through grid-scale battery projects that connect storage directly to power networks. These systems are essential for balancing intermittent energy sources such as solar and wind.

A significant portion of the new capacity was installed toward the end of the year, as developers rushed to meet deadlines linked to the conclusion of the government’s 14th Five-Year Plan. More than 65 GWh of grid-scale battery storage capacity was added in December alone, representing a 135% increase year on year, said Iola Hughes, head of research at Benchmark Mineral Intelligence.

Last September, China’s National Development and Reform Commission and National Energy Administration unveiled a $35 billion plan to double battery storage capacity by 2027. The country has already exceeded earlier targets, having initially aimed to install 30 gigawatts of new energy storage capacity by 2025.

Benchmark Mineral Intelligence forecasts that China will install 239 GWh of new battery energy storage capacity this year, accounting for more than half of the 458.5 GWh expected to be added globally.

China’s dominance is reinforced by the presence of some of the world’s largest battery manufacturers, including CATL and BYD. While these companies have benefited from booming global demand for batteries used in electric vehicles and power grids, oversupply has triggered price competition and raised concerns about the sector’s long-term profitability.

US policy's impact on competition

By contrast, North America added just 57.8 GWh of battery energy storage capacity last year, a 28.4% increase from the previous year, according to Benchmark Mineral Intelligence. Electricity demand in the United States is rising rapidly, driven in part by the expansion of data centers used for artificial intelligence. Even so, the analytics firm expects only 79.25 GWh of new battery energy storage systems to be installed in the region this year.

Battery energy storage systems now account for a larger share of battery demand in North America than electric vehicles, following the removal of tax subsidies for EVs last year. “The impacts of U.S. policy,” Hughes noted, “are yet to materialize.”

At the same time, battery storage development in the U.S. faces growing challenges as the Trump administration shifts policy priorities away from renewable energy toward fossil fuels such as oil and gas. Certain tax credits for solar and wind projects are set to be phased out starting this year, while developers must source batteries and components from non-Chinese suppliers to qualify for remaining subsidies—an increasingly difficult requirement given China’s dominance in global battery production.

By Nazrin Sadigova