As the global energy transition accelerates, China’s energy storage market is rising at an astonishing rate. It is predicted that China’s energy storage market will exceed 100 gigawatt hours (GWh) by 2025, making it one of the fastest-growing markets in the world. Whether it’s grid-scale energy storage, distributed power generation, or EV charging facilities, energy storage systems are increasingly being utilized in a variety of application scenarios in China.
For buyers, project owners, and distributors, finding the right suppliers, ensuring product quality, controlling costs, and addressing logistical and tariff challenges in this market of opportunity is the key to success. This article will provide you with a comprehensive sourcing guide to help you make informed decisions in the complex Chinese energy storage market.
Also Read:
- Why do We Need Energy Storage?
- Top 10 Lithium Battery Manufacturers in China
- China’s Top 10 Commercial and Industrial Energy Storage Suppliers: An In-Depth Look at the Market Leaders
How to Choose the Right Energy Storage Battery Supplier?
When choosing a supplier of energy storage batteries, buyers need to focus on their ability to deliver high-quality, reliable solutions. Key factors include price and cost control, certification compliance, and supply chain reliability, all of which have a direct impact on project success and efficiency.
1. Price and Cost Control: Balancing Quality and Budget
1.1 Market Price Overview
Prices for energy storage systems in China are competitive due to well-established supply chains and economies of scale. Based on recent data, prices for battery energy storage systems (BESS) fluctuate between USD 59-132/kWh, depending on the type of technology and discharge rate (C-rate). Purchasers can optimize costs by selecting the right product for their project needs.
1.2 Policy-Driven Cost Reduction
The Chinese government has set a clear goal (the 14th FYP for Energy Storage) to reduce the cost of new energy storage systems by more than 30% by 2025, with a target price of RMB 0.8-1.0/Wh (~$0.12-0.15/Wh). This policy drives down costs through technological innovation and market competition, bringing long-term benefits to purchasers.
Procurement advice: When selecting a supplier, weigh the cost of certification against the price, while focusing on the policy’s impact on future costs. Choosing a supplier with transparent pricing and in line with policy trends can help balance budget and quality.
2. Certification Compliance: Meeting the Stringent Requirements of Global Markets
Certification compliance is a key consideration for buyers looking to export energy storage batteries to international markets. Quality suppliers often ensure that their products comply with international and Chinese standards.
2.1 International Standard Certifications
Energy storage batteries are required to pass a number of international certifications, including:
- UL 1642 (lithium battery standard)
- IEC 62133 (safety standard for portable batteries)
- UN 38.3 (lithium battery transportation safety standard)
- CE (European conformity mark)
These certifications are the passport to enter the global market and ensure product compliance in different countries and regions.
2.2 China National Standards
In the Chinese market, energy storage systems are required to comply with standards such as NB/T 34044-2017 (Technical Specification for Energy Storage Systems) and GB/T 40517-2021 (Safety Requirements for Battery Energy Storage Systems). These standards are supported by the Renewable Energy Law and the Electricity Law, which guarantee system efficiency, safety, and environmental performance.
2.3 Supply Chain Transparency and Compliance
- Supplier Audits: High-quality suppliers conduct rigorous audits of their partners to ensure compliance with international labor and environmental standards. For example, suppliers are required to sign compliance agreements and undergo regular inspections.
- Raw Material Traceability: Track the source of key materials such as lithium and cobalt through blockchain technology to avoid the use of conflict minerals and meet global ethical sourcing requirements.
- Compliance Documentation: Provide raw material source certificates and supplier declarations to help customers successfully pass customs clearance and reduce trade risks.
- International Cooperation: Work with certification organizations to ensure products are certified to, for example, ISO 9001 (quality management) and ISO 14001 (environmental management).
3. Product Quality Assessment: Ensuring System Reliability and Compliance
Product quality has a direct impact on the long-term success of energy storage projects, and buyers need to verify supplier capabilities through standards and case studies.
3.1 National Standard Compliance
Energy storage batteries that comply with standards such as NB/T 34044-2017 and GB/T 40517-2021 ensure system reliability in terms of efficiency, safety, and environmental performance.
3.2 Actual Project Verification
The reliability of the energy storage battery needs to be verified through actual applications. For example:
- Xinjiang 1MWh project: used for new energy grid connection or power supply in remote areas to demonstrate the stability of the energy storage system in extreme environments.
- Lucy Island 2.5MW lead-carbon battery project: applied to off-island microgrids to demonstrate the cost-effectiveness and cycle life of lead-carbon batteries.
3.3 Technology Innovation Capability
Suppliers’ R&D investment in high C-rate batteries or new energy storage technologies can enhance product performance and ensure their competitiveness in the market.
Image Source: Energy Storage News
Purchasing Suggestion: Require suppliers to provide proof of compliance with national standards and verify product quality through third-party testing organizations. Choosing suppliers with actual project experience can reduce procurement risks.
4. Supply Chain Advantage: Unique Competitiveness in the Chinese Market
As the global production center of lithium batteries, China provides unique conditions for energy storage procurement.
4.1 Strategic Location and Access to Resources
China has a complete supply chain from raw material mining to battery assembly, which allows buyers to reduce costs and shorten delivery cycles through local resources.
4.2 Technology and Innovation
Advanced manufacturing technology and continuous R&D investment make Chinese energy storage products globally competitive in terms of performance and safety.
Also Read: Technical Parameters and Management of Lithium Batteries in Energy Storage Systems
5. Logistics and Delivery: Ensuring Timely and Safe Transportation
5.1 Global Logistics Network
Suppliers usually cooperate with international logistics companies to provide a variety of transportation modes, such as sea, air, and land transportation, to meet different market demands.
5.2 Packaging and Safety
Packaging that meets international transportation standards and detailed transportation documents can ensure the safe arrival of products and smooth passage through customs.
Sourcing advice: Clarify logistics responsibilities in the contract and choose experienced logistics partners to ensure delivery efficiency.
6. Customs and International Trade: Addressing Compliance Challenges
6.1 Export Compliance
Suppliers need to comply with international trade regulations, such as supply chain documentation for the U.S. market that complies with the Uyghur Forced Labor Prevention Act (UFLPA), to ensure smooth exports.
6.2 Tariffs and Taxes
Suppliers familiar with global tariff policies can provide optimization advice to reduce import costs.
Sourcing advice: Consult with a trade compliance expert prior to sourcing to ensure regulatory compliance and prepare supply chain supporting documentation.
