Energy storage battery production increased by 84% in the first two months; 12 concept stocks have been surveyed by funds this year.

Special Topic: Deepening Asset Revaluation in China by 2026, Technology and Resources as Main Drivers

On March 17, the energy storage sector was active, with many stocks rising against the trend. Among them, NaBaiChuan, ShunNa Shares, Chint Power, GCL System Integration hit the daily limit, while Yicheng New Energy, Li New Energy, Helen Tech, and Sanhui Electric rose over 4%.

Significant Growth in Energy Storage Battery Production

On March 16, the National Bureau of Statistics released data on the national economic operation for January–February 2026, showing lithium-ion battery production increased by 42.6%, and lithium carbonate by 29.3%. Notably, energy storage lithium-ion batteries grew by 84%. A spokesperson for the bureau stated that China’s green energy transition has been steadily advancing, with remarkable results. The development of wind and photovoltaic renewable energy has driven the demand for energy storage, leading to rapid growth in related products.

Since 2026, the energy storage market has performed exceptionally well. According to data from the China Chemical and Physical Power Industry Association Energy Storage Application Branch, in the first two months, domestic new energy storage installed capacity reached 9.51 GW / 24.18 GWh, with power and capacity increasing by 182.07% and 472.06%, respectively. The bidding market has also been active; in February 2026, new energy storage bids (including pre-bids) totaled 15.5 GW / 53.9 GWh, with increases of 94.1% and 73.3% year-over-year.

Recent explosive demand for energy storage is mainly driven by two factors: the surge in AI computing power creating new application scenarios, and a phased overseas market rush to install.

On one hand, AI infrastructure has become a significant new growth point for energy storage. Data centers consume enormous amounts of electricity, and energy storage helps smooth peak loads, reduce electricity costs, and provide emergency backup for critical loads. The large-scale development of data centers is expected to open new growth opportunities for the energy storage market.

On the other hand, export rushes provide strong short-term support. Earlier this year, the Ministry of Finance and the State Taxation Administration issued a notice on adjusting export tax rebate policies for products like photovoltaics, prompting lithium battery companies to accelerate production and deliver overseas orders early. According to the Battery Alliance, in the first two months, China exported a total of 48 GWh of power and energy storage batteries, a 24.6% year-over-year increase, with energy storage batteries accounting for 13.5 GWh, or 28% of total exports.

New Energy Storage Recognized as a Strategic Emerging Industry

This year, policies continue to favor new energy storage. The government work report emphasized “building a new power system, accelerating smart grid construction, developing new energy storage, and expanding green electricity applications.”

At the April 6th press conference of the 14th National People’s Congress, Zheng Zhanjie, director of the National Development and Reform Commission, explicitly listed new energy storage as one of the “Six Major Emerging Pillar Industries.” The industry’s strategic importance in China’s energy transition is increasingly highlighted.

Policy mechanisms for the energy storage industry are also improving. In January, the National Development and Reform Commission and the National Energy Administration issued a notice on improving capacity electricity pricing mechanisms, proposing an independent capacity price mechanism for new energy storage on the grid side. This allows independent new energy storage stations to be compensated based on local coal power capacity prices, filling a gap in the market’s revenue mechanism.

The “Special Action Plan for Large-Scale Construction of New Energy Storage (2025–2027)” set a target of over 180 GW of installed capacity nationwide by 2027, with direct investment of about 250 billion yuan, providing clear growth expectations.

Supported by policies, new energy storage has achieved leapfrog growth. According to the Zhongguancun Energy Storage Industry Technology Alliance, in 2025, China’s cumulative new energy storage installed capacity exceeded 100 GW for the first time, reaching 144.7 GW, an 85% increase year-over-year, and 45 times the capacity at the end of the 13th Five-Year Plan.

12 Stocks Under Fund Company Research

According to Securities Times Data Treasure, there are 57 A-share stocks involved in the energy storage industry chain, with an average increase of 11.76% since the beginning of the year. Baichuan Shares, Chint Power, and Shenling Environment saw the largest gains, at 99.44%, 73.48%, and 51.15%, respectively.

As the industry rapidly develops, concept stocks related to energy storage continue to attract institutional attention. Data shows that this year, 12 stocks have been researched by fund companies, with Tianci Materials, Zhongwei New Materials, and Haopeng Technology leading with 35, 16, and 9 fund visits, respectively.

Tianci Materials stated during investor visits that the new capacity of lithium hexafluorophosphate is being added mainly based on market demand and market share goals. The originally planned 35,000-ton capacity is progressing as scheduled, expected to be operational in the second half of 2026.

Zhongwei New Materials indicated that it has built 200,000 tons of capacity for lithium iron phosphate and 50,000 tons for lithium iron phosphate cathode materials. The company is gradually establishing an integrated supply chain from upstream resources to downstream materials to ensure supply stability and enhance cost advantages.

Forty stocks related to energy storage have released 2025 performance data, with 24 showing year-over-year growth (including turning losses into profits). Stocks like Lead Intelligent, Tianci Materials, Ruitai New Materials, Haopeng Technology, Gotion High-tech, and Pannergy Technology have seen growth exceeding 100%.

Many companies in their earnings forecasts mention the high prosperity of the energy storage industry. Kelu Electronic noted that the rapid development of energy storage has significantly increased project deliveries, boosting revenue. Shanshan Shares said that their anode material business benefits from strong downstream demand from new energy vehicles and energy storage markets, with continuous capacity release leading to substantial sales growth.

(Source: Securities Times)