With the rapid growth in global demand for long-duration energy storage batteries, the acceleration of related technological updates, the United States and European companies are embracing a rare opportunity to gain a foothold in the battery industry dominated by the Chinese Communist Party.
According to a report by Bloomberg on Tuesday (April 21), data from Bloomberg New Energy Finance (BloombergNEF) shows that after setting a record in 2025, the global new installation of long-duration energy storage systems is expected to increase nearly fourfold this year.
Long-duration energy storage refers to “super batteries” systems that can sustain power supply for several hours to days. China has overwhelmingly dominated the lithium-ion battery field, currently accounting for about 72% of the global cumulative long-duration energy storage capacity.
While China has almost monopolized the global market in conventional lithium-ion batteries, the landscape for new technologies in long-duration energy storage is diverse. It includes batteries using various metals, thermal brick storage, gravity energy storage, compressed air storage in caves, among others. No single technology reigns supreme in this field unlike in the lithium-ion battery industry, creating a more open competitive environment.
Furthermore, each long-duration energy storage system often requires tailored design based on local conditions and cannot be mass-produced and exported globally like solar panels.
Yiyi Zhou, Senior Analyst of Energy Storage at BloombergNEF, remarked, “Long-duration energy storage is not a standardized commodity like solar panels. I expect it cannot be easily exported on a large scale.” This hurdle makes it challenging for Chinese companies to penetrate overseas markets through low-cost dumping tactics as in other sectors.
Frederic Godemel, Executive Vice President of Energy Management at Schneider Electric SE, also noted, “This competition remains quite open,” emphasizing that no one technology currently dominates the field.
Ms. Zhou added, “China leads in scale, while the United States is more diversified in research and technology types.”
The United States is the world’s second-largest market for long-duration energy storage, driven by the significant expansion of data centers leading to a surge in electricity demand. The market growth in the United States is expected to accelerate further, with deployments picking up in the latter part of this decade, and Germany, India, and Japan are also expected to follow suit.
Unlike solar panels, long-duration energy storage often requires specialized designs for specific locations, making standardization and mass production for export difficult. This characteristic diminishes China’s advantage in expanding overseas and aids in nurturing domestic supply chains in various countries.
The International Energy Agency pointed out in a report in February that developing storage batteries for 10 to 100 hours or even longer should be a priority for governments expecting to heavily rely on renewable energy in the future.
Kostantsa Rangelova, Global Power Analyst at Ember, further emphasized that long-duration energy storage technology is one of the critical missing components in deeply decarbonizing power systems.
Form Energy Inc., based in Somerville, Massachusetts, deployed its iron-air battery technology capable of sustainable power supply for 100 hours. Last month, it signed an agreement with a data center developer, and in February, it reached an agreement with utility company Xcel Energy Inc. to power Google’s site in Minnesota.
Gabriel Kra, Co-founder of Prelude Ventures, a venture capital firm, commented that the surge in U.S. electricity demand and shortages of natural gas turbines have “opened a door” for long-duration energy storage. He further emphasized that there is currently “no evidence to show any advantage for Chinese companies”.
Despite the changing competitive landscape, China will remain a key market in global long-duration energy storage. Zhongchu Guoneng Technology Co. and Dalian Rongke Energy Storage Group Co. are currently leading companies in China, and the Chinese government is supporting dozens of pilot projects for alternative lithium-based technologies to maintain its dominance in the battery field.