China Aims to Nearly Double Battery Storage by 2027 in $35 Billion Plan

On September 12, 2025, Reuters reported that China is planning to nearly double its so-called new energy storage capacity—from 95 GW (as of June) to 180 GW by 2027. The plan is expected to stimulate 250 billion yuan (approximately $35 billion) in investment.

New energy storage includes lithium-ion battery systems, compressed air, flywheels, and supercapacitors (but excludes pumped hydro storage). This scaling effort reflects China’s commitment to strengthening renewable energy integration and ensuring grid stability, especially as power demands grow across sectors including AI, EVs, and electrified industry.

By stacking large battery parks with renewable generation, China could reduce intermittency issues and drive sustainable growth in high-demand, high-tech areas. Compared internationally, the U.S. had about 26 GW of utility-scale battery storage by end of 2024, projecting just over 46 GW by end of 2025.

Key Highlights

• China plans to expand new energy storage capacity from 95 GW to 180 GW by 2027.

• Strategy backed by 250 billion yuan (~$35 billion) in investments.

• Storage technologies include lithium-ion, compressed air, flywheel, supercapacitor systems.

• Move strengthens China’s capacity for renewable energy integration and grid resilience.

Why This Matters

1. Enabling AI & Data Centre Growth: Large-scale storage is crucial to support the energy demands of AI systems—even more so as datacenters integrate local renewables.

2. Sustainability Leadership: The strategy showcases China’s green infrastructure ambitions and could set a template for other nations.

3. Energy Security: With better storage, utilities can buffer renewables and ensure reliable power—key for smart infrastructure.

4. Global Benchmarking: China’s push far outpaces U.S. storage capacity projections, signaling shifts in global energy dynamics.

Source
Reuters – Full Article