In 2023, the Chinese energy storage lithium battery industry is undergoing significant changes in technology, pricing, and industry dynamics. The recently released 2023 China Energy Storage Lithium Battery Industry Development Blue Book by GGII at the 2023 GGII Energy Storage Annual Conference sheds light on these transformations.
According to GGII’s statistics, the cumulative shipment of energy storage lithium batteries in China reached approximately 127GWh in the first three quarters of 2023, with a year-on-year growth rate of nearly 50%. However, the shipment volume in the third quarter decreased by about 23%, prompting a downward revision of the annual shipment forecast to 180GWh, a 22% reduction from the initial target of 230GWh.
Intense market competition, influenced by lower-than-expected market demand and increased new entrants, has led to aggressive pricing for energy storage products. Starting in the second half of the year, several systems and battery bids saw prices fall below cost, contributing to industry consolidation. A notable example is the rapid decline in battery cell prices from 0.5 yuan/Wh to 0.4 yuan/Wh within two weeks.
GGII’s analysis of segmented applications reveals a slowdown in the growth of power storage/communication storage, while demand for industrial and commercial energy storage is expected to grow by over 200% in 2023.
Looking at the competitive landscape, the concentration of battery cell enterprises increased in the first three quarters of 2023. Market share for companies like CATL has slightly decreased, while others like Sungrow, BYD, EVE Energy, Guoxuan High-Tech, and Pylontech have experienced a continuous rise in market share driven by increased overseas business.
GGII’s statistics for January to November 2023 show that domestic battery cell companies have signed contracts for over 150GWh with international customers, underscoring the growing global influence of China’s energy storage batteries. Notably, many battery cell companies are venturing into the integrated field, with companies like BYD, Sungrow, Rui Purlan Jun, Pylontech, CATL, and Nandu Power securing leading positions.
In summary, the trends in the 2023 energy storage lithium battery race indicate an expanding application landscape, rapid cost reduction, and the ongoing challenge of product homogeneity, especially in the context of a potential market shakeout.
