The international energy storage market in October was turbulent, with intense trade and industrial policy maneuvering between China and the United States causing ripples in the global clean energy supply chain.
On October 9th, my country's Ministry of Commerce and General Administration of Customs jointly issued an announcement imposing export controls on key items such as lithium batteries and artificial graphite anode materials.
Following this, two days later, on October 11th, US President Trump responded strongly on social media, declaring that a 100% tariff would be imposed on China starting November 1st. If this policy is implemented, the cumulative tariff on Chinese energy storage batteries exported to the US will reach as high as 158.4%. This short-term policy battle between China and the US has escalated tensions in the global energy storage industry chain.
However, a crucial turning point came at the end of October. After intensive consultations in Kuala Lumpur, China and the US finally reached several consensuses during their summit meeting in South Korea on October 30th.
The US officially announced the cancellation of the 10% fentanyl tariff and the suspension of equivalent tariffs for one year. Following the US's suspension of related measures, China will also suspend its countermeasures against the US for one year. This provides valuable strategic adjustment time for China's energy storage industry, which is facing severe challenges in its overseas expansion.
I. From 158% to 30.9%, Signs of Easing in the US-China Trade Truce
Looking back at October, the news of the US threatening to impose a 100% tariff caused a major shock in the energy storage industry. According to calculations, if this policy were implemented, combined with existing tariffs, the total tariff on Chinese energy storage batteries exported to the US would exceed 140.9% from November 1st. By January 1, 2026, with the "301" tariff increasing from 7.5% to 25%, the cumulative tariff would further climb to 158.4%.
Not to mention that in July, Trump also signed the OBBB Act, restricting the participation of Chinese supply chains in the US energy storage market through strict "Foreign Entity of Concern (FEOC)" provisions.
This series of combined measures effectively amounts to completely excluding Chinese energy storage products from the US market.
Following this round of negotiations, the newly reached tariff agreement stipulates that the tariff structure for Chinese energy storage products exported to the United States will primarily consist of the following parts:
First, the base tariff remains unchanged, with the US continuing to impose a benchmark tariff rate of 3.4% on Chinese energy storage batteries.
Second, regarding Section 301 tariffs, according to the list of additional tariffs announced by the Biden administration in September 2024, lithium-ion batteries for non-electric vehicles will be subject to a 7.5% tariff rate, which is planned to increase to 25% in 2026.
Furthermore, there are significant adjustments to the reciprocal tariffs. The original 24% tariff rate will be suspended for another year, effectively remaining at the previous 10% rate.
Regarding the key issue of the negotiations—the fentanyl tariff—the US decided to eliminate the 10 percentage point increase, currently retaining only 10% of the original 20% tariff rate.
Based on this calculation, the total tariff on Chinese energy storage products exported to the United States is currently 30.9%, including a 3.4% base tariff, a 7.5% Section 301 tariff, a 10% reciprocal tariff, and a 10% fentanyl tariff.
Besides the easing of tariff barriers, tensions in the logistics sector have also eased. The US has decided to suspend its Section 301 investigations into China's maritime, logistics, and shipbuilding industries for one year. This move will effectively reduce international logistics costs, improve the overall efficiency of the global supply chain, and bring substantial benefits to the energy storage industry.
In fact, the US's shift from a hardline to a pragmatic approach to tariff policy reveals policymakers' concerns about the risks of over-reliance on trade protectionism. The increasingly stringent tariff policies have not only failed to effectively curb the development of China's energy storage industry but may also hinder the US's own energy transition process.
Industry data shows that the dominant position of Chinese companies in the global energy storage supply chain continues to strengthen. According to statistics from Infolink Consulting, global energy storage cell shipments reached 240.21 GWh in the first half of this year, a year-on-year increase of 106.1%. All of the top ten global shipment companies were Chinese, demonstrating their undeniable influence. Against this backdrop, the US faces a real dilemma: despite attempts to drive supply chain relocation through high tariffs, achieving a complete "decoupling" from China's energy storage industry chain in the short term is virtually impossible. US domestic production capacity cannot yet meet the rapidly growing demand of its domestic energy storage market. Forcibly cutting off the supply chain will not only increase its energy transition costs but may also delay its climate goals.
II. Global Deployment: Diversified Market Breakthroughs for Chinese Energy Storage Companies Faced with a complex and volatile international trade environment, Chinese energy storage companies have already planned ahead, reducing their dependence on a single market through globalization and diversification strategies.
This year, benefiting from the booming global energy storage market, my country's energy storage exports have achieved leapfrog growth. From January to September 2025, the total scale of Chinese energy storage overseas orders and cooperation reached 214.7 GWh, a surge of 131.75% year-on-year. This demonstrates that US tariff barriers have not hindered the internationalization of my country's energy storage industry, and Chinese energy storage companies are expanding into the global market at an astonishing pace.
Data shows that in the first three quarters of this year, orders from the US accounted for only 1.76% of the total overseas volume for Chinese energy storage companies, ranking last among the seven major overseas markets: the US, Australia, Germany, Japan, South Africa, Italy, and the UK.
In stark contrast, Australia ranked first with orders exceeding 37 GWh, while Japan ranked second with over 23 GWh. Particularly noteworthy is that Germany overtook the US in May of this year to become the largest destination market for Chinese battery exports, accounting for 18.5% of the market share. This indicates that the global market landscape of my country's energy storage industry is undergoing rapid restructuring.
In the process of going global, leading Chinese energy storage companies are spearheading the wave of globalization. CATL leads the pack with 53.51 GWh of overseas orders, while Haichen Energy and BYD demonstrate strong international competitiveness with 21.57 GWh and 6.54 GWh respectively. These companies have secured large orders in the global market thanks to their technological advantages and cost control capabilities. Meanwhile, companies such as RPL Energy, Trina Solar, Jingkong Energy, and Risen Energy have also announced securing US energy storage orders or establishing strategic partnerships, showcasing the overall international competitiveness of China's energy storage industry.
Furthermore, in addition to traditional product exports, Chinese energy storage companies are cultivating the global market through various means. On the one hand, leading companies are accelerating the establishment of production bases and R&D centers overseas, upgrading from "product export" to "capacity export." On the other hand, companies are circumventing trade barriers and deeply participating in the global energy storage industry chain through flexible methods such as localization cooperation and technology licensing. This multi-layered and comprehensive internationalization strategy has laid a solid foundation for the continued development of China's energy storage industry in the global market.
III. National Strategy Sets a Clear Path for Energy Storage Development Over the Next Five Years
As Sino-US trade relations ease and the energy storage industry gains some breathing room, the domestic energy storage industry is also receiving a new round of policy support.
According to the newly released "Action Plan for Large-Scale Construction of New Energy Storage (2025-2027)," specific development goals for the next three years are clearly outlined: the newly added installed capacity of new energy storage nationwide will exceed 100 million kilowatts, with the total scale expected to reach over 180 million kilowatts by the end of 2027. This ambitious blueprint not only depicts a clear path for industry development but is also expected to drive approximately 250 billion yuan in direct project investment, injecting strong momentum into the industrial chain.
Looking ahead to the 15th Five-Year Plan period, the National Energy Administration further pointed out that it will fully explore the development potential of various "flexible resources." With the accelerated progress of my country's energy transition, wind power and solar power generation will still need to add approximately 200 million kilowatts of installed capacity annually in the future, and 100 national-level zero-carbon industrial parks will be built during the 15th Five-Year Plan period. This will undoubtedly open up huge market space for the energy storage industry and create continuous growth opportunities.
This round of trade tensions between China and the US in the energy storage sector has opened a window of opportunity for Chinese companies to re-enter the US market. However, having weathered this storm, China's energy storage industry has clearly found a more stable development pace, no longer relying on a single market, but instead building a more resilient industrial ecosystem through diversified global deployments, leading technological capabilities, and strong domestic policy support.
Looking ahead, the competitive and cooperative relationship between China and the US in the clean energy sector will continue, but the focus of the competition is gradually shifting from simple tariff figures to deeper issues such as technical standards, supply chain efficiency, and global market influence. For Chinese energy storage companies, this trade turmoil is both a stress test and an opportunity for strategic upgrading.
