China’s total installed energy storage capacity reached 213.3 GW, increasing 54% year-over-year (YoY), according to preliminary data from the China Energy Storage Alliance (CNESA).

The country has achieved its energy storage installation target two years ahead of time.

China had set a target to install over 180 GW of energy storage capacity by 2027, up from 95 GW as of June 2025, with an investment of approximately RMB250 billion (~$35 billion).

Pumped storage capacity accounted for 31.3% of the total energy storage capacity. New energy technologies, particularly lithium batteries, experienced significant growth. Lithium batteries made up more than two-thirds of the total energy capacity installed in 2025, according to Chen Haisheng, Chairman at the Zhongguancun Energy Storage Industry Technology Alliance.

China’s total installed capacity of new energy storage (using technologies such as lithium batteries) reached 144.7 GW, up 85% YoY.

Earlier, energy storage was mostly installed by consumers for their use. However, this trend is expected to shift to standalone, grid-level installations.

Haisheng added that most provinces in China had met the new energy storage targets set by the 14th Five-Year Plan, which ended in 2025.

In July, China Energy Engineering Corporation’s auction for 25 GWh of lithium-iron-phosphate battery systems resulted in a record-low quoted tariff of CNY0.37 (~$0.051)/Wh, a 30% year-over-year decrease from 2024.

BloombergNEF had forecast global energy storage capacity additions to grow by 35% in 2025 to 94 GW or 247 GWh.

Mainland China continues to account for the bulk of global energy storage demand, supported by regulatory requirements that mandate storage with utility-scale solar and wind projects, the report said.

Corporate funding for energy storage companies, including venture capital, debt, and public market financing, totaled $2.2 billion across 31 deals in Q1 2025, according to Mercom Capital Group’s recently released Q1 2025 Funding and M&A Report for Energy Storage.