GXED(SH:600617) Sou Hu Cai Jing·2025-12-23 00:23Core Viewpoint - The energy storage sector in China has transitioned into a phase of "disruptive leadership," moving from a position of catching up to a clear global advantage [2][4]. Group 1: Historical Transition of Energy Storage - Energy storage has evolved from being seen as a backup power source to becoming a central component of the energy system [6][13]. - Previously, energy storage was considered a cost item and not integrated into pricing or trading, limiting its role in the energy market [8][12]. - The rise of renewable energy sources like wind and solar has made energy storage indispensable for grid stability [9][11]. Group 2: China's Competitive Advantage - China's leadership in energy storage is attributed to a comprehensive industrial system rather than individual company successes [15][14]. - The core of energy storage lies in battery cell manufacturing, where China has achieved a "scale-cost-technology" lock-in [16][19]. - China possesses the largest production capacity, fastest expansion speed, and has optimized the entire supply chain from raw materials to logistics [19]. Group 3: Real-World Application and Feedback - China is the only country with a fully operational energy storage system that has been tested in real-world conditions, providing invaluable feedback for improvement [25]. - This practical experience allows Chinese companies to refine their products in a demanding environment, which cannot be replicated through subsidies [25]. Group 4: Global Demand Drivers - The surge in global energy storage demand is driven by three structural factors: the impact of AI on electricity demand, the aging European grid, and the leapfrogging of traditional energy stages in regions like the Middle East and Africa [26][27][31]. - AI is reshaping power demand curves, making energy storage a critical infrastructure for data centers [26]. - Europe faces challenges with its aging grid, making energy storage a necessary solution as it cannot quickly expand its infrastructure [28][30]. Group 5: Defining Industry Standards - China's dominance in energy storage is characterized by its ability to set industry standards rather than merely competing in the market [38][39]. - As global systems adapt to Chinese products, this shift signifies a generational change in the industry [39]. - The lifecycle of energy storage projects typically spans 10 to 20 years, locking in China's leading position for the foreseeable future [39]. Group 6: Geopolitical Context - Energy storage is now considered a critical infrastructure industry, making it difficult for other nations to isolate or block China's advancements [46]. - The urgency of energy demands means that countries must engage with Chinese technology, regardless of political rhetoric [46]. Group 7: Conclusion on National Strategy - China's success in energy storage is not a gamble but a result of long-term industrial accumulation and strategic direction [47]. - The interconnectedness of various sectors, including renewable energy, battery technology, and AI, indicates a self-accelerating network that enhances China's position in the global energy landscape [47][48].