China’s Energy Storage Industry Takes Stand Against “Internal Competition”
August 13 – In a significant move toward sustainable industry development, the China Industrial Association of Power Sources has released a draft initiative titled “Maintaining Fair Competition Order and Promoting Healthy Development of the Energy Storage Industry,” marking the formal beginning of the sector’s “anti-internal competition” campaign.August 13 – In a significant move toward sustainable industry development, the China Industrial Association of Power Sources has released a draft initiative titled “Maintaining Fair Competition Order and Promoting Healthy Development of the Energy Storage Industry,” marking the formal beginning of the sector’s “anti-internal competition” campaign.
Industry Leaders Rally Behind Fair Competition Initiative
More than 100 key industry players have joined the initiative, including prominent names such as CETC Lantian Technology Co., Ltd., BYD Auto Industry Co., Ltd., EVE Energy Co., Ltd., Huawei Digital Power Technology Co., Ltd., and China Electric Equipment Group Energy Storage Technology Co., Ltd.
According to Liu Yong, Secretary General of the Energy Storage Application Branch of China Industrial Association of Power Sources, “Nine of the top ten lithium-ion battery manufacturers and eight of the top ten energy storage system integrators have participated in this initiative. This demonstrates strong industry support and suggests we’re moving toward consensus and self-regulation.”
Focus Shifts from Price Wars to Quality and Innovation
The initiative encourages companies to compete based on technological advancement, service quality, reputation, and project execution capabilities. It calls for rational pricing based on actual operational costs and risk assessment, moving away from destructive low-price strategies that could lead to “inferior products driving out superior ones.”
Companies are urged to increase R&D investment and establish efficient innovation mechanisms, particularly focusing on breakthrough technologies in core materials, system integration, and intelligent control systems. The goal is to achieve self-sufficiency and large-scale application of advanced technologies.
Ensuring Accountability and Industry Oversight
The association has outlined measures to address unfair competition practices, including issuing industry alerts, publishing case studies, and when necessary, reporting violations to relevant regulatory authorities.
“The drafting process involved extensive consultation through seminars, surveys, and targeted interviews with various stakeholders across the industry chain,” Liu Yong emphasized. “Feedback from member companies covered not only specific suggestions on pricing behavior and bidding processes but also valuable input on technological innovation, standard setting, quality control, and industry supervision.”
Market Growth and Sustainable Development
Recent data shows impressive growth in China’s new energy storage sector, with cumulative installed capacity reaching 94.91 GW/222 GWh by the end of June, representing a 29% increase since the end of 2024. The association projects national cumulative installed capacity will exceed 110 GW by 2025.
“The energy storage industry has evolved rapidly from early technology exploration to rapid expansion phase,” said Yu Xiaoming, Senior Investment Advisor at Shaanxi Jufeng Investment Consulting Co., Ltd. “While some companies have achieved global leadership in just a few years, this rapid growth has also brought ‘growing pains,’ with internal competition leading to losses for some enterprises and increased risks of inferior products.”
Yu added, “The ‘anti-internal competition’ initiative comes at a crucial time to restore rationality to the market, encouraging companies to focus on quality and technological innovation. This will help create a healthier market environment, accelerate technology iteration, and promote natural selection in the industry.”
Time to Secure Your Supply Chain: Why Acting Now Matters
The industry’s shift toward quality standards presents both an opportunity and an urgent challenge for distributors and installers. As price competition gives way to quality-based selection, partnerships with manufacturers who lack technical expertise or reliable supply chains could put your business at risk.
“The coming months will separate industry leaders from followers,” noted a LeforESS representative. “With major manufacturers prioritizing quality over quantity, we’re already seeing longer lead times for premium battery cells. Distributors who secure their supply now will be best positioned to meet the growing demand for reliable energy storage solutions.”
LeforESS maintains strategic partnerships with top-tier cell manufacturers including BYD and HiTHIUM, ensuring consistent supply of premium LFP batteries. Our inventory planning already accounts for the projected market tightening, but capacity remains limited.
Recommended Action: Contact our sales team to discuss your needs and secure preferred allocation status. Early planning ensures you won’t face project delays or lost revenue opportunities when the quality-focused market transition accelerates.