The choice between "power + energy storage" or simply "power" or "energy storage" has long been a dilemma for many energy storage companies.

On August 22nd in Tongliang, Chongqing, as HiTHIUM Energy Storage's 100GWh product rolled off the production line, the answer to this dilemma became clear. "Since our establishment, we have chosen the path of 'focusing on energy storage,' possessing comprehensive capabilities from material systems to product systems, from system integration to complete station services, all designed for energy storage," said Ye Zhen, General Manager of HiTHIUM Energy Storage's Chongqing manufacturing base, noting that the significant improvement in shipment rankings largely stems from this "focus."

Investment in the energy storage sector has continued to intensify in recent years, with fierce competition becoming evident. According to incomplete statistics from the CESA Energy Storage Application Association's industrial database, China's planned energy storage cell capacity exceeded 1,000GWh in 2024, but actual shipments were only 300GWh, resulting in a capacity utilization rate of less than 35%.

However, the landscape has changed this year. "Since March this year, HiTHIUM Energy Storage's Xiamen and Chongqing manufacturing bases have been operating at full capacity continuously. Currently, factory orders are scheduled through September and October," said the head of HiTHIUM Energy Storage's manufacturing division.

**Market Direction Shifts: Long-Duration Energy Storage Becomes the "Hot Commodity"**

The market direction has changed.

In May 2019, the National Development and Reform Commission issued the "Transmission and Distribution Pricing Cost Supervision Measures," explicitly stipulating that energy storage facilities should not be included in transmission and distribution pricing. This policy meant that grid companies could not recover the costs of grid-side energy storage projects through transmission and distribution pricing, directly affecting the economic benefits and investment attractiveness of grid-side energy storage projects, leading to a halt in grid-side energy storage project investment and construction.

In November 2019, State Grid Corporation of China issued the "Notice on Further Strict Control of Grid Investment," stipulating that electrochemical energy storage facilities on the grid side should not be developed through investment, leasing, or energy management contracts, and no new pumped hydro storage projects would be arranged. This policy further restricted the development of grid-side energy storage and reduced energy storage project implementation and investment.

At that time, power batteries were the darling of capital in the new energy sector, with comprehensive support in terms of technical pathways, business models, and policy protection. Energy storage was precisely the other side of power batteries.

"We were established in December 2019. Although energy storage wasn't a hot sector then, we believed that 'power batteries are the entry point for new energy, not the endpoint.' The ultimate goal of new energy is to solve global energy structure problems, which cannot be solved by power alone and ultimately requires energy storage participation - the commonly referred to 'source-grid-load-storage.' Without 'storage,' the 'source-grid-load' cannot form a closed loop and cannot change the global energy structure," said the head of HiTHIUM Energy Storage's manufacturing division, explaining that HiTHIUM chose to focus on energy storage from its establishment.

On August 22nd, HiTHIUM Energy Storage's 100GWh product rolled off the production line in Tongliang, Chongqing, with its global shipment ranking jumping from fifth place in 2023 to second place in the first half of this year.

In fact, the current energy storage market has undergone subtle directional changes. In February this year, the National Energy Administration issued the "2025 Energy Work Guidance Opinions," emphasizing the need to strengthen technological innovation and forward-looking deployment of new energy storage technologies, particularly long-duration energy storage technologies. The National Energy Administration also stated in the "New Power System Blueprint" that China needs to meet balance adjustment requirements on daily and longer time scales from 2030-2045, and cover full-cycle multi-type energy storage system operational requirements from 2045-2060.

With policy guidance, companies are increasing investments. Multiple lithium battery energy storage companies including Contemporary Amperex Technology Co.,Ltd. (CATL) and Eve Energy Co.,Ltd. have begun focusing on long-duration energy storage. "HiTHIUM noticed long-duration energy storage demand in 2021, but the market wasn't clear then. Everyone's understanding of energy storage was just as a supplement to energy, and everyone was wondering whether there really was such 'long-duration' demand," the aforementioned executive recalled.

In December 2023, HiTHIUM released the world's first thousand-ampere-hour long-duration energy storage battery, quickly upgrading and iterating in 2024 to launch the ∞Cell 1175Ah and ∞Power 6.25MWh energy storage system. In June this year, the world's first thousand-ampere-hour long-duration energy storage battery - ∞Cell 1175Ah - entered mass production at the Chongqing base.

The core value of large-capacity batteries lies in cost per kilowatt-hour. As energy storage batteries have new infrastructure attributes, investors are extremely concerned about cost per kilowatt-hour and payback periods, given product safety. However, whether large-capacity batteries can truly solve the challenge of achieving both long duration and economic efficiency still requires market validation.

**Demand Recovery: Some Manufacturers' Production Bases at Full Capacity for Half a Year**

Beyond long-duration energy storage gaining more favor, there are also obvious changes on the demand side.

Since last year, the previous capacity expansion of energy storage batteries has been a concern for the industry. According to incomplete statistics from the CESA Energy Storage Application Association's industrial database, domestic energy storage lithium-ion battery planned annual capacity additions reached 1,116.38GWh in 2024, while new energy storage installations in 2024 were only 77.3GWh, and China's energy storage battery shipments for the full year 2024 were approximately 301GWh.

"Since March this year, HiTHIUM Energy Storage's Xiamen and Chongqing manufacturing bases have been operating at full capacity continuously. Currently, factory orders are scheduled through September and October, with very saturated production plans," the head of HiTHIUM Energy Storage's manufacturing division said, noting a sense that the industry is developing favorably.

According to China Energy Storage Network reports, production lines of companies including Contemporary Amperex Technology Co.,Ltd. (CATL), Eve Energy Co.,Ltd., REPT BATTERO, and Envision Energy continue to operate at full capacity, with order volumes surging to require queuing, with some companies stating that "customers can't get orders even with price premiums."

The aforementioned executive compared the current energy storage development stage to that of power batteries in 2016-2017. This judgment is based on the continuous expansion of energy storage application scenarios and continued cost reduction. "If energy storage technology iterates to make costs low enough, even approaching thermal power costs, then the market will definitely grow," they stated.

Additionally, growth in overseas energy storage markets has also driven order volumes. According to incomplete statistics from the CESA Energy Storage Application Association's industrial database, global energy storage cell shipments reached 226GWh in the first half of 2025, a year-over-year increase of 97%. According to data from HiTHIUM Energy Storage's prospectus (draft), its overseas revenue proportion increased from 1% to 28.6%, with gross margins exceeding 40%.

"We adopt a 'local for local' localized operation strategy, achieving end-to-end service capabilities through local base deployment," the executive introduced. Under this operational strategy, localized teams and nearby service resource points can achieve rapid response, with quantifiable full-process services.

Research reveals that Chinese energy storage companies' overseas expansion is undergoing fundamental transformation - from simply selling products to providing comprehensive solutions.

For example, Sany Silicon Energy, facing the electricity revolution triggered by Africa's mining deep-processing policies, provides customers with "solar-storage-diesel integrated" solutions, helping customers reduce electricity costs by approximately 50%. The company's exploration of "EPC+F" (Engineering, Procurement, Construction + Financing assistance) and "investment-construction-operation integration" models both alleviates customer funding pressure and drives entire industrial chain overseas expansion.

This transformation aligns with changing demands in the global energy storage market. Overseas customers, particularly in high-end European and American markets, need not just battery products but comprehensive solutions including project design, system integration, intelligent operation and maintenance, and even financial services.