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China Rolls Out Strategy to Expand Production of Next-Generation Energy Storage Technologies

On February 10, 2025, China’s Ministry of Industry and Information Technology (MIIT), along with seven other central government departments, jointly released an action plan to advance the development of manufacturing for new-type energy storage systems.

What is “New-Type Energy Storage System Manufacturing”?

This refers to the production of components and technologies used in advanced energy storage applications. It encompasses batteries (such as lithium and sodium), electrical and electronic devices, thermal management systems, information processing tools, safety control systems, and energy control technologies.

Key Elements of the Action Plan

The action plan is divided into eight main sections:

  1. General Requirements

  2. Innovation in New-Type Energy Storage Technologies

  3. Coordinated Promotion of Industrial Development

  4. Transformation and Upgrading of the Industry

  5. Expansion of Pilot Applications

  6. Development of Industrial Ecosystems

  7. Promotion of Trade and Investment Collaboration

  8. Support Measures

Sections 2 through 8 include a total of 22 specific measures.

Targets for 2027

The plan outlines several major goals by 2027:

  • Build globally competitive industrial chains for new-type energy storage manufacturing.

  • Boost the number of leading businesses with global competitiveness.

  • Enhance the sector’s innovation capacity and overall competitiveness.

  • Develop a high-end, intelligent, and green manufacturing sector.

Specific objectives include:

  • Scaling up the industry to match downstream demand.

  • Cultivating 3–5 eco-driven industry leaders.

  • Creating industrial clusters and resilient supply chains.

  • Establishing robust industry standards and market mechanisms.

  • Improving product performance and energy conversion efficiency.

  • Ensuring comprehensive safety across the product lifecycle.

  • Diversifying storage technologies to meet multi-sector needs (e.g., energy, transportation, telecom, agriculture).

  • Supporting China’s carbon peaking and neutrality goals.

 

Technological Innovation Focus

The action plan emphasizes both incremental and breakthrough innovation:

  • Accelerate upgrades to mature technologies like lithium batteries.

  • Support breakthroughs in supercapacitors, sodium, flow, and lead-carbon batteries.

  • Promote development of long-duration storage (e.g., compressed air, hydrogen).

  • Encourage hybrid energy storage systems tailored to diverse applications.

  • Invest in basic R&D for next-generation technologies (e.g., intelligent batteries, thermal and cold storage).

Supportive Policies and Measures

To implement the plan, the government will:

  • Strengthen national coordination and local policy support.

  • Increase R&D funding for key energy storage technologies.

  • Launch pilot applications across various use cases.

  • Standardize industry practices and foster a unified national market.

  • Develop certification and traceability systems for lithium batteries.

  • Promote workforce development through industry-education integration.

  • Improve human resource incentives and evaluation mechanisms.

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