The energy storage cell market is experiencing strong supply and demand.

Recently, the energy storage industry has maintained a strong growth trend, with orders for core components like energy storage cells experiencing explosive growth, leading to a shortage of cells in the market. Operating information disclosed by multiple companies shows that the energy storage cell market is currently experiencing robust supply and demand, with leading companies generally extending their order schedules into next year. The industry's transformation from "scale expansion" to "quality and efficiency improvement" is becoming increasingly clear.

The full production and sales of energy storage cell companies directly confirm the industry's high prosperity.

For example, on November 26th, Fujian Longking Environmental Protection Co., Ltd. (hereinafter referred to as "Longking Environmental Protection") stated at its Q3 2025 performance briefing that the company currently has a full order book for energy storage cells, with production scheduled until June 2026. The company's current energy storage cell production capacity is approximately 8.5 GWh, and it has been operating at full capacity since March of this year. To meet the current shortage of cells in the market, the company plans to appropriately increase production capacity in reserved areas of its existing production lines to further reduce unit production costs.

Leading battery companies are maintaining a high-load production pace. EVE Energy Co., Ltd. (hereinafter referred to as "EVE Energy") recently disclosed on its investor interaction platform that the company's energy storage battery orders are full and production is at full capacity, with 600Ah+ large-capacity cells already in mass production. According to data from Xinluo Consulting, in the first half of 2025, the company's energy storage battery shipments remained firmly in second place globally, and its market share continued to consolidate.

Benefiting from robust demand in downstream power batteries and energy storage batteries, upstream material companies are simultaneously ramping up production. Listed companies such as Hunan Yuneng New Energy Battery Materials Co., Ltd. (hereinafter referred to as "Hunan Yuneng") and Guizhou Anda Technology Energy Co., Ltd. have stated that they are operating at full capacity with high capacity utilization.

Hunan Yuneng believes that in the energy storage sector, the application of large-cell technology further enhances the economics of energy storage systems. Supported by policies such as electricity market reform and capacity pricing compensation, the increased demand for energy storage from emerging application scenarios like AI data centers, coupled with rapid growth in overseas energy storage demand, are all positive factors driving the energy storage market into a period of rapid development. As a key link in the lithium battery industry chain, the market demand for phosphate cathode materials is expected to continue its strong growth momentum, driven by both power batteries and energy storage batteries.

He Zhuoxin, a researcher at the China Chemical and Physical Power Sources Industry Association, told the *Securities Daily* that the high prosperity of the energy storage industry this year stems from both policy and market drivers. In particular, the advancement of market-oriented reforms in new energy grid connection tariffs and the implementation of mechanisms such as capacity pricing have made the revenue model for energy storage clearer.

Faced with continuously growing market demand, companies are consolidating their competitive advantages through technological upgrades and business model innovation.

Regarding cost control, Longking Environmental Protection plans to address industry competition through lean production, increased output and quality, and cost reduction through technology. Data shows that the company's gross profit margin for energy storage cells was approximately 10% in the third quarter.

Leading companies such as EVE Energy and CATL (Contemporary Amperex Technology Co., Limited) are leveraging their technological barriers to gain a competitive edge in areas such as large-scale battery cell mass production.

Meanwhile, long-term strategic cooperation has become a crucial support for the stable development of the industry chain. On November 12, Beijing Haibo Sicheng Technology Co., Ltd. (hereinafter referred to as "Haibo Sicheng") signed a ten-year strategic cooperation agreement with CATL. From 2026 to 2028, Haibo Sicheng will purchase no less than 200 GWh of electricity, and CATL will ensure supply according to its needs.

Zhang Xiang, a visiting professor at Yellow River Science and Technology College, told the *Securities Daily* that this deeply integrated long-term contract model provides downstream companies with a stable supply of core resources. Industry experts generally predict that global energy storage market demand will continue to grow significantly in 2026, with new scenarios such as data center energy storage and long-term energy storage driving incremental demand. The energy storage industry is shifting from a focus on total volume to a focus on structural advantages, with companies possessing technological strengths and global supply chain capabilities continuing to lead the way.

He Zhuoxin stated that the energy storage industry must avoid falling into price wars. First, it needs to strengthen industry self-regulation and standards, resolutely opposing malicious bidding below cost and pushing bidding and procurement from "lowest price" to "optimal value." Second, it needs to improve the available capacity and cost-per-kilowatt-hour performance of energy storage products and systems through technological and product differentiation. Finally, it needs to accelerate its international expansion and certification efforts, actively participating in global competition.