A Vertically Integrated Powerhouse: China’s Strategy for Leading the Energy Storage Industry

January 29, 2019 | State of the Market Report

By implementing policies that heavily incentivize the development and adoption of new energy vehicles (NEVs), China has been able to build itself into a vertically integrated powerhouse for producing and consuming Li-ion batteries. This report reviews China’s ambitious policy schemes for incentivizing NEV development and sales, as well as its more recent stationary storage initiatives. It then examines the strategies that Chinese corporations have used to quickly adapt to these policies and become dominant players in the energy storage and electric vehicle industries, finding the country likely to continue being a dominant player in the Li-ion industry.

Coverage Areas

  • Owning the Energy Transition
  • The Future of Mobility

Table of Contents

  • Executive Summary
  • China’s Government-Led Energy Storage Industry
    China’s rise to dominance within energy storage was in large part driven by government policies that provided corporations with generous financial incentives.
  • Establishing a Dominant Position in the Energy Storage Value Chain
    Chinese companies play an influential role in every step of the Li-ion battery value chain, including raw mineral supplies, electrode manufacturing, and cell production.
  • Creating A Business Strategy to Meet China’s NEV Mandates
    Chinese automotive OEMs have developed a variety of strategies to meet NEV mandates, while startups emerge to capitalize on the push for electrification.
  • Drawing Comparisons to China’s Rising Stationary Storage Industry
    China’s stationary storage market today resembles its small NEV market from five years ago, and it is positioning itself to be the global supplier of vanadium flow batteries.
  • Outlook

Lead Analysts

Chloe Holzinger
Director, Research