Core Insights - The new energy storage market in China is experiencing a temporary decline in October 2025 after a peak in September, with new installed capacity dropping significantly year-on-year and month-on-month [1][3][4] - Despite the short-term setback, the cumulative installed capacity for the first ten months of 2025 shows a robust growth of 36%, with a potential for record-high annual installations by year-end [3][4] New Energy Storage Project Analysis - In October 2025, the total newly installed capacity of new energy storage projects reached 1.70 GW/3.52 GWh, representing a year-on-year decrease of 35% and 49%, and a month-on-month decrease of 51% and 66% [1][4] - Independent energy storage projects accounted for over 75% of the new installations, indicating a shift towards independent storage solutions [3][7] - Third-party enterprises surpassed state-owned enterprises for the first time, with over half of the new installations attributed to equipment manufacturers and private energy companies, highlighting a diversification in market participants [3][17] Regional Distribution - The western region of China accounted for over 50% of the new installed capacity in October, with Ningxia and Shanxi leading in new capacity [10][11][12] - Ningxia's new energy storage demand is driven by high renewable energy integration and national infrastructure projects, positioning it as a key area for energy storage development [12][13] Technology Trends - The majority of new installations utilized lithium iron phosphate battery technology, which made up 98.5% of the capacity, while non-lithium technologies like compressed air and flow batteries are gaining traction [20][21] - Multiple projects utilizing non-lithium technologies are in planning and construction phases, indicating a trend towards technological diversification in the energy storage sector [20][21] Market Dynamics - The market is witnessing a significant shift in investment dynamics, with third-party companies increasingly participating in energy storage projects, driven by favorable policies and declining technology costs [17][19] - Despite the rise of third-party enterprises, large energy groups remain crucial players in the market, contributing to 46% of the new installations in September [17][19]