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The global energy sector is accelerating its green transition. Energy storage is witnessing tremendous market opportunities. Recently, several Chinese energy storage companies announced orders for overseas projects, with regions including Europe, Latin America, the Middle East, and others. According to statistics from the Zhongguancun Energy Storage Industry Technology Alliance, in 2025, Chinese energy storage companies secured new overseas orders worth 366 GWh, a year-on-year increase of 144%. Alongside the surge in orders, new policy developments have also attracted attention from the energy storage industry: from April 1, 2026, to December 31, 2026, China will reduce the VAT refund rate for exported battery products from 9% to 6% ； Starting January 1 next year, the VAT refund policy for exported battery products will be abolished. On one hand, there is robust market demand; on the other hand, industry subsidies are gradually being phased out. How can Chinese energy storage companies adapt to this new environment and continue to expand their presence in the global energy storage market? Accelerating expansion overseas: Chinese energy storage companies see a surge in foreign orders. In March, in Amsterdam, the Netherlands, the 2026 Dutch Solar Photovoltaic Exhibition was successfully held. “During the exhibition, we signed supply agreements for energy storage systems with two key partners in Europe, with a total capacity of 600 megawatt-hours. At the same time, LONGi’s energy storage solutions secured their first order in the German market, indicating a significant breakthrough for the company in key European markets. ”She Haifeng, vice president of Longi Green Energy, said. Since the beginning of this year, numerous Chinese energy companies, including Longi Green Energy, have successively announced several major overseas cooperation deals in the field of energy storage. In March, HiTHREE Energy Storage signed a letter of intent with the Spanish government, planning to invest approximately 400 million euros to build a large-scale factory for manufacturing batteries and energy storage systems ； In February, Sungrow Power Supply announced that it would invest in building its first manufacturing plant in Europe, with a total investment of around 230 million euros; the plant is planned to produce 20 GW of photovoltaic inverters and 12.5 GWh of energy storage systems per year ； At the beginning of the year, AVIC New Energy signed an investment agreement with the Portuguese government to build a lithium battery factory there. Looking ahead, China’s energy storage sector saw a boom in overseas expansion last year. Data provided by the Zhongguancun Energy Storage Industry Technology Alliance show that by 2025, Chinese energy storage companies will receive new overseas orders worth 366 GWh, a 144% increase compared to the previous year, with these orders increasing sharply in the second half of the year. In terms of the regions where orders are placed, Australia, the United States, Saudi Arabia, and Chile rank among the top four in terms of order volume, with Australia having by far the largest order volume. In terms of order growth rates, emerging markets such as the Middle East, South America, and Southeast Asia are showing increasing potential, becoming \"new engines\" that drive order growth. In terms of the entities entering international markets, there are over 70 Chinese energy storage companies involved in this trend, enabling the entire value chain to expand overseas; among them, battery manufacturers remain the key players. From the perspective of application scenarios, demands in special areas such as data centers, mine microgrids, ports, and islands are emerging at an accelerating pace. In terms of cooperation models, long-term service agreements have become standard, while joint overseas expansion models are on the rise. China’s trend of expanding its energy storage business overseas has attracted significant attention both at home and abroad. A report published by Reuters at the end of last year stated that reforms in China’s electricity market are reshaping the economic viability of energy storage in the country. With the growing demand for energy storage in overseas markets, Chinese energy storage manufacturers are experiencing explosive growth, further solidifying their dominant position. Cosimo Rees, an analyst at the policy research and consulting firm, noted that orders for China’s leading energy storage companies are virtually booked solid, and many factories have started operating on two shifts to meet this surge in demand. “Looking at the overall scale, 2025 will be the real ‘year of explosion’ for China’s energy storage industry going global. ”Chen Haisheng, chairman of the Zhongguancun Energy Storage Industry Technology Alliance and director of the Institute of Engineering Thermophysics at the Chinese Academy of Sciences, said. By accumulating experience, Chinese companies have developed mature capabilities for overseas transactions. How did this wave of Chinese companies entering the energy storage sector abroad come about? The aforementioned Reuters report cited several reasons for the growing demand in overseas markets: the electricity demand from artificial intelligence data centers, the aging infrastructure of European power grids, and the expansion of renewable energy sources. How can energy storage play a role in the aforementioned scenarios? In simple terms, energy storage is a technological system that stores energy through media or devices, and releases it when needed. It mainly addresses the issue of \"time mismatch\" in energy supply and demand. For example, wind and solar power generation are dependent on weather conditions; therefore, energy storage systems are needed to charge and store electricity when there is an excess, and to release it when there is a shortage, thereby converting renewable energy into a form that can be used continuously and stably. Another example is industrial and commercial users: since the power grid has price differences between peak and off-peak hours, energy storage systems can be used to charge from the grid during the off-peak periods when prices are lower, and then release the stored energy for use by users during peak hours when prices are higher. This is what is commonly referred to as \"shaping the peak and filling the valley.\" Having understood the role of energy storage, it is easy to see that, given the current rapid development of artificial intelligence technologies, the aging of traditional power grids, and the swift growth of new energy sources, energy storage—acting as a “stabilizer” for the power grid—is of great significance. In the interview, energy storage companies involved in going global stated that they have indeed sensed these market opportunities. Tian Qingjun, senior vice president of Farvision, told reporters that demand for energy storage overseas has seen a significant increase in recent years, driven by various factors such as the accelerated global energy transition, the soaring demand for artificial intelligence computing centers (AIDC), technological advancements that have reduced the costs of energy storage systems, and tax policies. “Looking at specific markets, Europe and Australia have decided to accelerate energy storage deployment, primarily based on their current state of energy development. Especially in Europe, the energy storage market has evolved from a ‘spot-based breakthrough’ in the UK to ‘widespread growth’ across the entire continent, with a significant increase in demand for energy storage in countries such as Germany, France, and Spain. In the United States, the growing demand for energy storage is driven primarily by the development of AIDC. ”Tian Qingjun said. Faced with strong market demand, Chinese energy storage companies seized the opportunity in a timely manner. But with such a large market, why are it precisely Chinese companies that stand out? Several energy storage companies expanding overseas revealed that this wave of large-scale investment and cooperation isn’t merely a case of “jumping on the bandwagon”; rather, it is the result of years of accumulating experience and honing their internal capabilities. “We are not starting from scratch in the energy storage field. On the contrary, thanks to over a decade of technological exploration and project experience, Longi’s energy storage business team has established a mature overseas delivery system. To date, we have built up 31 gigawatt-hours of our own energy storage capacity worldwide, with a total capacity connected to the grid exceeding 13 gigawatt-hours. Our operations cover key markets such as Europe, North America, and Australia. ”She Haifeng said. Tian Qingjun revealed that Envision is also accelerating its expansion into overseas markets. At present, the company’s business in domestic and international markets accounts for roughly equal shares, but it is expected that overseas markets will make up 2/3 of the company’s total business in the future. “As early as 2008, we embarked on our international expansion. We have accumulated extensive experience in new energy technology research and development, project implementation, and ecosystem collaboration in overseas markets such as Europe, North America, Latin America, Japan, Southeast Asia, and the Middle East. Additionally, we boast a mature team of international professionals and managers, which gives us a natural advantage in expanding our energy storage business globally. ”Tian Qingjun said. ““Having the capability to deliver in overseas markets” – this seemingly simple description is actually the result of years of efforts by Chinese enterprises. Market conditions vary across countries and regions. For instance, the Nordic markets must cope with extremely cold environments, which requires energy storage systems to operate stably at low temperatures ； Southeast Asia has a hot and humid climate; therefore, energy storage systems must be resistant to corrosion and moisture. For these situations, enterprises need to develop differentiated solutions based on local conditions. Several energy storage companies stated that promoting the internationalization of China’s energy storage industry means facilitating its “localization”. Localized operations require companies to integrate their own technologies with local needs and resources; this demands not only continuous improvement by the companies to achieve technological advancement but also keen market insight to observe and adapt to the market environment in a timely manner. As businesses grow, they can also create jobs and generate tax revenue for the local area, achieving a win-win situation. The reduction in tax rebates is pushing companies to shift from competing on price to competing on quality. With 2026 in mind, many Chinese energy storage companies have plans to further expand their operations in overseas markets. Some plan to build factories overseas to boost local productivity ； Some are ready to provide technology in order to work together with local manufacturers for mutual benefit. Meanwhile, a new development has also drawn widespread attention in the industry. From April 1, 2026, to December 31, 2026, China will reduce the export VAT rebate rate for battery products from 9% to 6% ； Starting from January 1, 2027, the export VAT refund for battery products will be abolished. This change is vividly referred to by industry insiders as “weaning.” “In the past, some Chinese companies were able to establish a foothold in international markets relatively quickly by relying on price wars along with tax rebate subsidies. The adjustment to the tax rebate policy is aimed at promoting the high-quality development of China’s energy storage industry; through a gradual process of reduction in such incentives, companies are encouraged to focus on improving their brands, technologies, and services. ”Liu Yongdong, deputy secretary-general of the China Electricity Council, said. Adjustments to the tax refund policy will indeed cause certain fluctuations in the industry in the short term. Tian Qingjun believes that in the short term, the reduction and elimination of tax rebate rates will temporarily increase corporate costs, which in turn will be passed on to customers. Given that the new tax refund policy took effect on April 1, this year has seen a surge in advance stockpiling and accelerated project installations in overseas markets. As a result, the energy storage supply chain is likely to remain tight. Currently, the production schedule for Envision’s backlog of orders remains consistently full; all its manufacturing bases are operating at high capacity, continuously delivering products to relevant markets. “In the long run, the abolition of tax rebate policies actually helps to shift the industry from price competition to value competition that emphasizes technology and services. It will be inevitable for Chinese new energy companies to integrate into the local supply chains of overseas markets, and relevant preparations need to be carried out as soon as possible. ”Tian Qingjun said. Many companies have already taken action. She Haifeng revealed to reporters that the company has launched new plans, building on its channel network in over 120 countries and regions across the world, driven by its photovoltaic business. By the end of 2028, it is planned to establish 30 comprehensive local service centers in the key global markets for photovoltaic and energy storage systems, in order to accelerate the development of a service network that leverages the synergy between photovoltaic and energy storage technologies and to enhance the ability to provide localized services overseas. In Liu Yongdong’s view, the reduction in export tax rebates could lead to a reshuffle within the industry. For companies with low gross profit margins, a reduction in export tax rebates and their eventual elimination could further squeeze profits. If overseas prices are passively raised, some companies may withdraw from overseas markets due to their inability to absorb the increased costs. Opportunities lie within crises. The reduction in export tax rebates will also drive the development of new models for going global. The heads of several interviewed companies stated that the phasing out of export tax rebates helps prevent cutthroat competition within the industry, facilitating a shift from “competing on price” to “competing on quality”. Only companies that truly strive to refine their business can remain in the market for the long term. “On the one hand, new technologies are likely to become the focus of competition among enterprises, with long-duration energy storage, high energy efficiency, and high safety being the directions for the development of future energy storage products ； On the other hand, the market structure will become even more fragmented. The differences in policy environments, regulatory requirements, and market demands across various regions—such as Europe, the United States, the Middle East, and Southeast Asia—will prompt leading domestic enterprises as well as mid-tier companies to adopt different competitive strategies. Some companies with weaker competitiveness may also turn to niche areas in the energy storage sector, such as residential storage, commercial and industrial applications, and recycling. ”Liu Yongdong said. Looking inward, alongside the development of the new energy industry, China is striving to expand its energy storage sector, which provides a favorable environment for energy storage enterprises to grow. In the field of new energy storage, the **Energy Administration stated that it will improve the policy and management framework for new energy storage, continue to promote innovation in technology and industry, and drive the high-quality development of new energy storage systems, thereby providing strong support for the construction of new energy systems and new power grids. Facing the opportunities and challenges in both domestic and international markets, energy storage companies say that focusing on strengthening their internal capabilities and adapting to changing circumstances is becoming a common consensus in the industry. “We will continue to drive technological innovation and global production capacity deployment, achieve coordinated development in domestic and international markets, seize global opportunities flexibly, and create long-term value for our customers. ”Tian Qingjun said.