China pushes for new-type energy storage industry

This is expected to be internationally competitive in two years.

Chinese authorities have announced measures promoting the new-type energy storage manufacturing sector.

According to the government, the industry refers to the sector that produces energy storage, information processing, safety control, and other products related to new energy storage methods.

An action plan issued by the Ministry of Industry and Information Technology and seven other government organs expects the industry to be internationally competitive by 2027.

China will launch initiatives to boost technology innovation in the new-type energy storage sector. These will include measures to speed up the upgrading of mature technologies such as lithium batteries and support disruptive technological innovations.

The country will also promote coordinated industrial development.

Greenpeace East Asia Beijing-based project lead Yao Yi said this move “signals a critical shift to boost the energy storage industry” as the technology will play a critical role in integrating new wind and solar power into China’s grid.

“The plan also addresses intensive competition in the industry and sets guardrails to prevent price drops in a race to the bottom,” she added.

The expert noted that there is a mismatch between manufacturing capabilities and existing demand on the grid.

“Integrating more energy storage will significantly contribute to China’s energy transition, including the grid’s flexibility and ability to integrate renewable energy,” she said.

The plan is expected to significantly benefit regions like Guangdong, China’s largest regional economy, which has already identified energy storage as a strategic pillar industry.