CITIC SEC: High domestic energy storage demand, optimistic about related leading companies

CITIC SEC released a research report stating that the 14th Energy Storage International Summit and Exhibition ESIE 2026, held in Beijing on April 1-3, attracted over 800 exhibitors and saw a noticeable increase in attendance. Large-capacity battery cells, sodium-ion batteries, and AIDC solutions were the highlights of this exhibition for various manufacturers. With the cancellation of mandatory storage requirements in Document No. 136 by the National Development and Reform Commission, and the establishment of a national capacity electricity price mechanism in Document No. 114, the domestic energy storage market will shift from cost prioritization to value creation, and the competitive landscape is expected to improve. It is recommended to focus on top manufacturers in the energy storage industry chain including battery cells, PCS, and integration. Key points: The 14th Energy Storage International Summit and Exhibition ESIE 2026 was held at the Beijing International Convention Center from April 1 to April 3. This energy storage summit is a large-scale industry event with 6 exhibition halls and around 800 leading companies participating, showing an increased interest compared to 2025. Exhibitors covered the entire energy storage industry chain, including materials, battery cells, PCS, BMS, temperature control and fire protection, system integration, EPC, operation and other sectors. CITIC SEC's main points are as follows: Energy storage batteries: Large-capacity products will gradually be commercialized in 2026, with technologies such as sodium-ion batteries leading the way. Battery manufacturers at this exhibition actively introduced large-capacity battery cells and sodium-ion batteries, aligning with the latest trends in the energy storage industry. 1) Large-capacity battery cells: Contemporary Amperex Technology showcased a 587Ah energy storage battery cell, with cumulative shipments exceeding 5GWh by April 2026 and commercialization progressing rapidly. CALB launched the "Zhi Jiu" series of long-life energy storage battery cells, including three capacity versions of 392/588/661Ah. Farasis Energy exhibited a large-scale production of 790Ah large-capacity energy storage battery cells with an energy density of over 440Wh/L, a cycle life exceeding 15000 times, and a design life of up to 30 years. BYD Company Limited presented a 2710Ah energy storage dedicated blade battery, increasing capacity by over 300% compared to conventional industry batteries; 2) Sodium-ion batteries: Contemporary Amperex Technology introduced energy storage-specific sodium-ion batteries, adopting a platform design similar to the 587Ah lithium battery, with a capacity of 300+Ah, energy efficiency of 97%, cycle life exceeding 15000 times, and suitable for large-scale energy storage and AIDC scenarios lasting 2-8 hours. Farasis Energy launched the first energy storage-specific sodium-ion battery cell and announced its production. The sodium-ion battery cell has a capacity of over 180Ah, a cycle life of not less than 20000 times, a working temperature range from -40C to 70C, and can operate stably in extremely cold and hot environments. With the gradual increase in the price of lithium carbonate, the introduction of large-capacity battery cells, sodium-ion batteries, and other technologies is expected to accelerate further. Energy storage systems: Actively adapting to large-capacity battery cells to launch new products and transitioning from singular products to solutions. In terms of products, energy storage manufacturers actively launched new energy storage systems adapted to large-capacity battery cells. Sungrow Power Supply globally launched the industry's first all-scenario energy storage inverter platform and introduced a new generation of "1+X" modular PCS based on this platform. Beijing HyperStrong Technology released the GWh-level HyperStation energy storage station solution, creating a full life cycle solution of "hardware + software + service," and exhibited the HyperBlock IV large-capacity energy storage system, HyperBlock M modular energy storage system, high-voltage cascading energy storage system, and the sensor-calculated control integrated energy storage intelligent distribution cabinet. Farasis Energy launched the 12.5MWh AI energy storage system equipped with a new generation of AI-adaptive PCS and released the 6.X-12.X MW AI adaptive energy storage inverter-boost integrated machine. Shenzhen Clou Electronics released the Aqua-C3.0 Ultra large-capacity new energy storage product, equipped with a 587Ah large-capacity LFP battery cell with a capacity of 5.154MWh. In addition to launching new products, energy storage manufacturers are gradually transitioning from singular products to application scenarios and introducing solutions for zero-carbon parks, AIDC, high-energy consumption and carbon reduction, among others. Numerous companies including Tenergy Energy Storage, Zhejiang Narada Power Source, and Farasis Energy released AIDC energy storage system overall solutions, aligning with the trend of AI-electricity collaboration. The capacity electricity price policy enhances the economic viability of energy storage, and domestic energy storage demand remains high. With the implementation of Document No. 114 by the National Development and Reform Commission and the National Energy Administration on January 30, the national-level energy storage capacity electricity price mechanism has been formally established, significantly boosting domestic owners' confidence in investing in energy storage. According to data from the China Energy Storage Association (CESA), China's newly recorded energy storage capacity amounted to 160GW/414GWh in January and February 2026, a year-on-year increase of 141.2% when measured by capacity, maintaining a high growth rate. From the perspective of installed capacity, in January and February 2026, China's new energy storage installed capacity reached 9.51GW/24.18GWh, a year-on-year increase of +182.07%/+472.06%, maintaining a high level of installation activity on a monthly basis. With the gradual establishment of the independent energy storage business model in 2025 and under policy guidance, the commercial model for domestic independent energy storage is expected to mature gradually in 2026, with a noticeable increase in owners' enthusiasm for investing in energy storage. The outlook for domestic energy storage demand maintaining a high growth rate is promising. Investment strategy. Against the backdrop of the cancellation of mandatory storage requirements in Document No. 136, the energy storage industry is transitioning from cost competition to value creation, with investment value gradually becoming apparent. With the establishment of the national-level capacity electricity price mechanism in Document No. 114 by the NDRC, energy storage income expectations are expected to be stabilized, encouraging owner investment enthusiasm. This has important implications for the investment decisions of customers such as state-owned enterprises. China's domestic energy storage installed capacity is expected to grow rapidly in 2026, and it is recommended to focus on top manufacturers in the energy storage industry chain: 1) Energy storage system integrators; 2) Battery cell suppliers; 3) PCS suppliers. Risk factors: Unexpectedly low energy storage industry demand; Policy changes beyond expectations domestically and internationally; Intensified anti-globalization leading to slower than expected overseas business expansion; Increased industry competition and deteriorating competitive landscape; Large fluctuations in upstream raw material prices.