China’s battery expansion plans highlight a widening gap with the US, as renewable energy demand fuels rapid growth in storage systems
2-MIN READ2-MIN ListenDaniel Renin ShanghaiPublished: 8:40pm, 9 Apr 2026Updated: 8:50pm, 9 Apr 2026China’s leading battery makers have unveiled plans to add more than 600 gigawatt-hours (GWh) of new production capacity for the energy storage system (ESS) market in just the first two months of 2026, underscoring surging global demand for renewable energy infrastructure.The planned facilities – spanning major players from Contemporary Amperex Technology Ltd (CATL) to Gotion High-tech – amount to roughly 10 times the 58GWh of total capacity installed across the US in 2025.According to the GGII Energy Storage Research Institute, a Shenzhen-based consultancy, 19 mainland Chinese battery producers it tracks were set to invest a combined 180 billion yuan (US$26.3 billion) to build new lithium-ion battery factories.
Once completed – with some facilities due to come online in late 2026 – the projects will add up to 900GWh of annual production capacity. About 70 per cent of this would be dedicated to the ESS market, with the remaining 30 per cent serving the electric vehicle (EV) sector, GGII said in a report released on Wednesday.
ESS comprises batteries alongside battery management, power conversion and control systems that store excess energy generated from renewable sources, while providing backup power during outages and helping stabilise electricity grids.
One GWh of battery capacity can supply around 750,000 households for a year.
“The boom in artificial intelligence computing is driving a surge in demand for renewable energy, and the ESS infrastructure supporting these projects is set for rapid growth,” said Davis Zhang, a senior executive at Suzhou Hazardtex, a supplier of specialised batteries. “More ESS battery facilities will be built in the coming years as global decarbonisation efforts continue.”
