The European Union has moved to prohibit funding support for projects utilizing Chinese inverters, prompting a firm response from China's Ministry of Commerce. On May 7, a ministry spokesperson addressed media inquiries regarding the EU's decision. The spokesperson stated that the EU, without any concrete evidence, has for the first time designated China as a so-called "high-risk country" and used this as a basis to block funding for projects employing Chinese inverters. This action constitutes stigmatization against China and represents unfair, discriminatory treatment towards Chinese products. China firmly rejects and opposes this measure. China urges the EU to immediately cease its stigmatizing practice of labeling China as "high-risk" and to revoke the unfair and discriminatory policies against Chinese products. China will closely monitor the situation and carefully assess the impact of the EU's policy on the interests of Chinese enterprises and the China-EU industrial and supply chains. China will take necessary measures to safeguard the legitimate rights and interests of its companies.

In other news, China's lithium battery exports showed remarkable growth in the first quarter. According to a report from CCTV Finance, lithium battery exports, part of the "new three" major new energy export categories, surged by 50.4% year-on-year, maintaining a rapid growth trajectory. This performance complements the high growth rates of electric vehicle exports at 77.5% and wind turbine exports at 45.2%. China's lithium battery export sector achieved growth in both volume and value during the quarter. The export momentum was particularly strong in March alone, with export value skyrocketing 69% year-on-year and increasing 20.6% month-on-month, completely reversing the sequential decline seen at the beginning of the year. This resulted in a pattern of "strong performance even in the off-season, with month-by-month increases." From a market perspective, overseas demand is showing diversified expansion. The EU remains the largest export market for China's lithium batteries, while ASEAN holds the position as the second-largest market. Concurrently, demand continues to grow in emerging markets such as the Middle East, Africa, and Latin America, indicating a continuously improving overseas market layout.

On the policy front, Hebei Province has announced its first batch of 72 virtual power plant pilot projects. The list, published on May 6 by the Hebei Provincial Development and Reform Commission, includes 54 hybrid-type and 18 load-type virtual power plants. Participants span central state-owned energy groups like Huaneng, State Grid, China Energy Investment Corporation (CHN Energy), China Resources, Datang, and CGN; local state-owned enterprises and government platforms such as Hebei Construction & Investment Group, State Grid Hebei Comprehensive Energy, State Grid Jibei Comprehensive Energy, Tangshan Guokong Chuangxin, and Zhangjiakou Municipal Holdings; and active private energy technology firms including Nanjing Baoneng Smart Energy, Aipuru Energy, Hebei Binshan Energy, and Hengshi Technology.

Anhui Province is strengthening energy storage management by implementing a tiered and categorized project library system. A notice issued on May 6 by the Anhui Energy Bureau, accompanied by a list of 78 recommended grid-side new energy storage connection sites for 2026, specifies that new energy storage projects will be managed under three categories: grid-side, generation-side, and user-side. A dynamic management mechanism for the project library will be established, with annual implementation lists and reserve project lists subject to timely adjustments. Projects meeting implementation conditions will be promptly included in the annual implementation list and are expected to commence construction as scheduled. Projects failing to start construction within six months of inclusion or not completed and grid-connected within the promised reasonable timeframe will be removed from the list.

Zhejiang Province's Tongxiang City, in its 15th Five-Year Plan outline released on May 7, emphasized strengthening the construction of diversified new energy storage systems. The document calls for steadily advancing the development of a new power system, accelerating the construction of a smart, robust, and flexible grid framework, strengthening power grid facilities at all levels, and enhancing comprehensive grid carrying capacity, system control, and emergency support capabilities. It also supports the efficient integration of new entities like virtual power plants and adjustable loads, and promotes the integrated development of bidirectional interaction between new energy vehicles and the grid. The plan encourages the commercial development of new storage technologies like molten salt storage and promotes various storage applications in virtual power plants and integrated source-grid-load-storage systems. Projects for the capacity improvement and transformation of Hongyi Thermal Power and Jiatong Thermal Power will also be advanced.

Fujian Province's 15th Five-Year Plan outline, issued by Zhangzhou City on May 7, proposes accelerating the development of high-performance storage batteries and exploring new energy storage industries such as cold storage, molten salt solar thermal storage, and compressed air energy storage. Focusing on the Zhangzhou nuclear power project, the plan aims to layout advanced nuclear energy technologies like high-temperature gas-cooled reactors and small modular reactors, and explore diversified comprehensive uses of nuclear energy including heating, cooling, and hydrogen production. It also emphasizes accelerating the construction of energy storage facilities, promoting projects like the Yunxiao Pumped Storage Power Station (6×300 MW) and new energy storage infrastructure to form green regulation capabilities for the new power system.

The Inner Mongolia Autonomous Region government, in an implementation plan for the "AI+" action (2026-2028) released on May 8, outlined support for direct green power connections for data centers and building a nationally leading green and intelligent computing power保障base. The plan focuses on constructing a new energy system that is clean, low-carbon, safe, and efficient, and enhancing the technological level of AI innovation and application in the energy sector. It supports developing intelligent equipment management systems with autonomous perception, decision-making, and execution capabilities in advantageous areas like power equipment condition assessment and intelligent maintenance, green hydrogen production process optimization, and smart station operations. The plan also aims to build a full-chain intelligent control system for electrolysis hydrogen production, storage, and usage, and promote the development of intelligent operations and maintenance for new energy. Support is included for data center loads to achieve direct green power connections.

In overseas market developments, Trina Solar has secured a 2.1 GWh integrated solar and storage project in Australia. Western Australia recently approved 10 new renewable energy and battery storage projects. Once fully completed, these will add 1.886 GW of renewable energy generation capacity and 3.683 GWh of independent storage capacity. The electricity generated could meet the daily needs of over 1 million households in WA, while the supporting battery storage systems could provide up to 4 hours of stable power during peak periods for over 4 million households. The Kirabara Integrated Solar and Storage Project, developed and operated by Trina Solar, is located in the Kadathinni region and includes 350 MW of solar capacity and 2,100 MWh of storage capacity, achieving "solar-storage synergy" to enhance energy utilization efficiency.

Indian solar manufacturer Solex Energy has signed a Memorandum of Understanding with the Gujarat government to build a 5 GW solar cell manufacturing plant and a 10 GW energy storage factory in the state. Solex will invest approximately 40 billion Indian Rupees (419 million USD) in the project. The 5 GW solar cell plant will be constructed in phases, with an initial 2 GW phase followed by a second 3 GW phase, alongside the establishment of a 10 GW Battery Energy Storage System manufacturing facility.

In a setback for US efforts to build a domestic battery supply chain, US battery recycling and cathode material company Ascend Elements has filed for bankruptcy protection. Despite three years of policy support aimed at reducing reliance on China's battery supply chain—which currently holds about 96% of global cathode material production capacity—US domestic industry foundations remain weak. Ascend Elements, which secured significant financing and government subsidies based on its closed-loop recycling technology, planned to build two plants to create local capacity. However, it encountered consecutive issues including project delays, funding shortfalls, and shrinking demand, ultimately leading to its inability to continue operations and declaration of bankruptcy. This follows the 2025 bankruptcies of battery recycler Li-Cycle, which halted work due to funding gaps, and energy storage battery supplier Powin, whose costs surged under the burden of high tariffs on Chinese battery cell imports.

A wind-storage project in Kazakhstan with Chinese investment participation has commenced construction. The Karaganda 500 MW Wind-Storage Project in Kazakhstan, jointly invested and developed by China Energy Engineering Group Investment Co., Ltd. and Samruk-Energy, has officially broken ground. This project represents another major new energy project successfully implemented by China Energy Engineering Corporation within the China-Kazakhstan governmental cooperation framework, following the Sauran Solar-Storage Project. The project covers approximately 8,000 hectares with a total investment of about 573 million USD. It is designed for 500 MW of wind power capacity,配套 with a 150 MW/300 MWh energy storage system. Upon completion, it is expected to generate over 1.7 billion kWh of green electricity annually, effectively improving the local energy structure.

Germany's energy storage expansion hit a record in the first quarter, adding 2 GWh of new capacity. According to data from the Federal Network Agency compiled by the German Solar Industry Association (BSW-Solar), approximately 2.5 million battery storage systems were grid-connected in Germany by the end of Q1 2026, with a total storage capacity of 28 GWh. In the first three months of this year alone, Germany added 2 GWh of new battery storage capacity, a year-on-year increase of about 67%, setting a new historical record. BSW-Solar noted that large-scale storage projects were the primary growth driver. New capacity from large-scale storage units exceeding 1 MWh individually surpassed 1 GWh in Q1, surging about 270% year-on-year. Commercial and industrial storage added approximately 160 MWh, up 42% year-on-year, while residential storage additions were about 740 MWh, remaining flat compared to the same period last year.

In the US, the Reno Planning Commission in Nevada has approved a conditional use permit for a 200 MW battery energy storage project planned by Trego Grid. The project will be equipped with 256 Tesla Megapack battery storage units, constructed using Lithium Iron Phosphate batteries, and organized into 16 clusters of 16 units each. It will be connected to the adjacent NV Energy Mira Loma substation. Supporting infrastructure includes a roughly 360-square-meter remote monitoring equipment control building, a substation, seven fire hydrants, and corresponding fire access roads. The project has an expected lifespan of 20 to 30 years, which can be extended through module and battery replacement.

On the corporate performance front, Far East Battery announced on May 7 that its subsidiaries received contracts and winning bids in April totaling 2.633 billion yuan for orders valued over 10 million yuan each. From January to April 2026, the cumulative value of such orders reached 8.417 billion yuan. Specifically for its smart battery storage/computing AI business, Far East Battery's cumulative orders over 10 million yuan for the first four months amounted to 2.460 billion yuan, a surge of 335.69% year-on-year. Orders secured in April alone were 737 million yuan, skyrocketing 2394.90% year-on-year and increasing 4.41% month-on-month. This included four energy storage system orders in April worth a total of 608 million yuan.

Jinko Solar reported delivering 5.2 GWh of energy storage systems in 2025. During an earnings briefing on May 6, the company stated that its energy storage business achieved a breakthrough in 2025, with annual deliveries soaring 384% year-on-year to 5.2 GWh. Overseas markets accounted for over 80% of this volume, demonstrating significant synergy between its solar and storage operations. In the first quarter of 2026, Jinko Solar's energy storage system shipments continued their rapid year-on-year growth, with product deliveries reaching 1.42 GWh and recognized revenue from 523 MWh. Gross margin improved significantly quarter-on-quarter. The gross margin for the energy storage business in Q1 was approximately 16%, but the business segment overall remained loss-making, partly affected by delays in recognizing revenue for certain orders.

In IPO news, Zephyr Intelligent Systems (Shanghai) Co., Ltd., a leader in battery thermal safety, has submitted an application to list on the Hong Kong Stock Exchange. The company, focused on innovation in new energy battery thermal safety technology, specializes in addressing thermal safety challenges for lithium batteries across various applications through the R&D, manufacturing, and sales of related products. For the fiscal years 2023 to 2025, its total revenue was 234.4 million yuan, 386.8 million yuan, and 916.0 million yuan, respectively, while it reported net losses of 95.794 million yuan, 102.3 million yuan, and 28.567 million yuan for those years. The prospectus indicates that net proceeds from the IPO are planned for five main areas, including enhancing R&D capabilities in battery thermal safety solutions and expanding production capacity and upgrading factory facilities.

A major compressed air energy storage project is seeking investment in Shanxi Province. On May 8, the Yongji City government in Shanxi released investment information for a 1400 MW/8400 MWh Compressed Air Energy Storage Project. The project, reportedly involving an investment of 550 million yuan by Anhui Yousai Technology Co., Ltd., will utilize non-supplementary combustion compressed air energy storage technology. With a total scale of 1400 MW/8400 MWh, it aims to achieve efficient electrical energy storage and flexible release, enhance the integration of new energy and the security and stability of the new power system, and contribute to low-carbon energy transition and industrial development.

In corporate developments, ST NaDu disclosed that 65 of its and its subsidiaries' bank accounts have been frozen, involving amounts of approximately 857 million yuan. An announcement on May 6 stated that the applied freezing amount totals about 856.8157 million yuan, representing 60.63% of its net assets from the latest audited report. The actual frozen amount is 46.9986 million yuan, or 3.33% of net assets. The freeze is attributed to litigation disputes including debt overdue, where creditors applied for judicial freezing. This situation is impacting ST NaDu's capital operations and management.

Zhejiang Huayou Cobalt announced plans to acquire 100% of Atlantic Lithium Limited for 210 million USD. The announcement on May 7 detailed the signing of a Scheme Implementation Deed, with the final acquisition price subject to determination by the Ghana Revenue Authority regarding capital gains tax. Upon completion, Atlantic Lithium will be consolidated into Huayou Cobalt's financial statements.

A state-owned advanced energy storage equity investment fund has been established in Hunan Province with 2 billion yuan in capital. The Hunan Jin Furong Advanced Energy Storage Equity Investment Fund Partnership was established on April 28. Its business scope includes private equity investment fund management and venture investment fund management services. It is primarily based in Changsha, Hunan, and is jointly established by state-owned enterprises including Changsha Shuntai Investment Management Co., Ltd., Hunan Provincial Jin Furong Major Project Equity Investment Fund, and Changsha Industrial Investment Fund.

Duneng Technology (Xiamen) Co., Ltd. has completed Series A financing raising several hundred million yuan. The announcement on May 8 stated that this round was led by the GCL Group, with participation from the Wuzhong Jinkong Industrial Fund among others. The funds will be主要用于 for the R&D iteration of a new generation of commercial and industrial storage products, the development of sales channels in Europe and the Asia-Pacific region, the operation of its Xiamen intelligent manufacturing base, and the expansion of its global team. Potential Capital acted as the exclusive financial advisor for subsequent financing. The company had previously completed a Pre-A round in 2024, gaining support from several industrial investors.

Shanghai's Minhang District has announced ambitions to achieve innovative breakthroughs in long-duration energy storage during its 15th Five-Year Plan period. The focus will be on technology pathways such as all-vanadium flow batteries, iron-chromium flow batteries, compressed air energy storage, and molten salt thermal storage. Goals include high safety, long lifespan, and low cost, advancing R&D in key materials, tackling technological challenges in high-temperature efficient compression and heat exchange, optimizing stack design and system integration, and developing core equipment like high-power density storage converters. Efforts will also aim to increase the单体 scale of storage modules and heat transfer efficiency, promote the large-scale application of long-duration storage in energy regulation and renewable energy integration, and attract material suppliers, equipment manufacturers, and system solution providers in flow batteries, compressed air storage, and molten salt storage to cluster in the area, building a complete industrial chain.