China plans to double energy storage capacity to 180 GW by 2027; Chinese firms target Europe

China plans to double the installed capacity of energy storage facilities to 180 GW by 2027. The target is set out in an industry plan jointly published by state institutions: the National Development and Reform Commission and the National Energy Administration (NEA). Chinese company GEM is also preparing to expand into Europe in partnership with a US company.

The original plan was to reach 30 GW of installed capacity of so-called “new energy storage” by 2025, a target that was already achieved two years ago. As of June 2025, installed capacity of “new energy storage”—which includes all forms of energy storage except hydropower plants—had already reached 95 GW, according to the regulator.

Most of this storage capacity is located in northern China, particularly in Inner Mongolia, where solar and wind power account for a large share of generation. Storage facilities play a key role in integrating these sources into the power grid. China is responding to growing demand for electricity while also pursuing its strategic goal of achieving carbon neutrality by 2060.

China is a global leader in the manufacture and development of energy storage technologies. Researchers are experimenting not only with lithium batteries, which currently account for the majority of storage capacity, but also with sodium-ion batteries, compressed-air energy storage, thermal storage and other innovative solutions.

China’s largest battery manufacturers are BYD and CATL. In 2022, CATL was the world’s largest manufacturer of electric vehicle batteries, with a market share of around 37 %. China controls a substantial part of the supply chain for these technologies—from raw material extraction and battery cell manufacturing to assembly and integration into energy systems.

In Europe, electrochemical (battery) storage capacity was approximately 35 GW in 2024, with some capacity in larger installations and some in homes and buildings. China, by contrast, is betting on large-scale storage projects.

GEM plans European partnership with Ascend Elements

Chinese company GEM, a giant in the battery materials market and one of the leading companies with an advanced battery recycling method, is planning a joint expansion into the European market with US company Ascend Elements, which also focuses on battery production and recycling.

The companies plan to establish a joint venture to acquire, develop and operate local businesses involved in battery recycling and shredding. The aim is to obtain so-called black mass - or black material containing substances such as lithium, nickel and cobalt—and build plants to turn it into raw materials for producing lithium carbonate, lithium hydroxide and other key materials for lithium batteries.

GEM has said it wants to create a global recycling network and is considering similar projects in the United States. The company has a recycled battery plant in Indonesia, and needs to secure as much material as possible for it.