Global Energy Storage Market to Grow 60%, Battery Industry Chain Lifts, Hai Ke Xin Yuan Rises Over 10%

(Source: Caixin)

On the demand side, global lithium battery demand is expected to reach 3,065 GWh by 2026, a year-on-year increase of 33.7%, driving rapid growth in lithium battery electrolyte demand.

On March 20, the battery sector surged rapidly. As of the latest report, Shida Shenghua (603026.SH) hit its first daily limit-up, Haike Xinyuan (301292.SZ) rose over 10%, and companies like Putailai (603659.SH), Penghui Energy (300438.SZ), CATL (300750.SZ), Hunan Yunei (301358.SZ), and Xinwanda (300207.SZ) also gained.

According to CITIC Construction Investment, driven by nonlinear growth in energy storage demand, a new cycle for lithium batteries is becoming clearer. On the demand side, global lithium battery demand is projected to reach 3,065 GWh by 2026, up 33.7% year-over-year, fueling rapid growth in lithium battery electrolytes.

Additionally, the global energy storage market is expected to grow by 60%, boosting the prosperity of the lithium battery industry. Data from the China Automotive Power Battery Industry Innovation Alliance shows that by 2025, China’s power and energy storage battery production will reach 1,755.6 GWh, a 60.1% increase year-over-year, with domestic sales of power batteries up 51.8%. The dual demand from energy storage and electric vehicles provides core momentum for the continuous expansion of the lithium battery market.

Dongwu Securities estimates that the global market size for SST and HVDC power supplies will both exceed 100 billion yuan by 2030, indicating significant market potential. Industry-wise, China’s HVDC technology accumulation surpasses overseas, and progress from HVDC power supplies to SST exceeds market and industry expectations. We are optimistic that domestic supply chains will collaborate with overseas Tier 1 companies to enter the North American AIDC market. We expect overseas HVDC projects to be implemented in Q2 2026, with small-scale SST applications starting in H2 2026. This year is likely to mark the beginning of large-scale industrialization for HVDC.

Ping An Securities points out that solid-state batteries are poised for launch, with equipment segments expected to benefit first. Leading companies in complete production lines have comprehensive solutions and are expected to benefit from capacity building in solid-state batteries and the expansion cycle of traditional lithium batteries.