Zhong Guo Neng Yuan Wang·2025-10-18 02:05Core Insights - The energy storage cell market is experiencing a supply shortage, with leading battery manufacturers operating at full capacity and orders extending into early next year [1][2] - The supply tightness is attributed to a rapid shift from oversupply to demand exceeding supply, which was unexpected by industry insiders [1][2] - The cost of energy storage systems is rising due to increased prices of core raw materials like lithium and cobalt, which directly impacts battery production costs [3][4] Supply and Demand Dynamics - The current supply tightness is a result of a mismatch between supply and demand, with the market transitioning from a state of oversupply in 2024 to a shortage in 2023 [2] - Major markets such as China, the US, and Europe continue to dominate cell shipments, while emerging regions like Asia-Pacific, the Middle East, and Africa are rapidly increasing demand [2] - The production capacity utilization rates for leading companies have significantly improved, with CATL's utilization rate reaching 89.86% in the first half of the year, up 13.53% year-on-year [1] Pricing Trends - The average bidding price for energy storage systems has increased, with 2-hour systems averaging 575.8 yuan/kWh (up 22.2% month-on-month) and 4-hour systems averaging 462.4 yuan/kWh (up 12%) [3] - The price increase is a result of changes in supply-demand dynamics and policy adjustments that have led to a surge in new energy storage installations [3][4] Market Opportunities - The energy storage sector is evolving from a cost center to a profit center, with projects now able to generate multiple revenue streams through capacity leasing and ancillary services [4] - Companies are expanding production capacity, with significant investments announced for new battery manufacturing facilities [6] Supply Chain Management - Companies are implementing various measures to ensure supply chain stability, including diversifying suppliers and optimizing inventory management [6] - There is a need for vigilance against irrational price competition, which poses systemic risks to the industry and could undermine the competitive position of Chinese firms in the global market [7]