CICC: Energy Storage Drives Demand, Lithium Battery Equipment Capex May Exceed Expectations

Stock News11-19

According to a research report by CICC, statistics from the energy storage and power market show that in Q3 2025, 28 provinces had 4,204 energy storage projects, with scale up 343% year-on-year. The boom in energy storage projects may drive upstream equipment capital expenditure growth, and since large-scale storage and power battery capacities are not interchangeable, new capacity investments are essential. Global energy storage capex growth in 2026 could exceed 50%.

Since Q3, downstream demand for energy storage has significantly surpassed expectations, potentially leading to upward revisions in lithium battery equipment capex forecasts. Recently, CALB (03931) and CATL (03750) provided higher-than-expected capacity guidance for next year. With equipment tenders imminent in Q4, orders for lithium battery equipment firms in 2026 are expected to accelerate. CICC’s key insights are as follows:

**Independent Energy Storage Growth Accelerates, Boosting Lithium Battery Equipment Capex** On November 10, the National Development and Reform Commission and the National Energy Administration issued guidelines to improve pricing mechanisms for flexible resources like new energy storage. CICC’s power and new energy team suggests that as more provinces roll out capacity pricing policies, the economic viability of energy storage projects will improve, sustaining the sector’s momentum.

**Overseas Power Battery Capex Growth Takes Over** From a power battery cycle perspective, 2025 marks an inflection point for capex among leading domestic firms. Due to global supply chain shifts, battery localization in Europe and the U.S. is expected to accelerate from 2026. Chinese lithium battery equipment manufacturers, with their competitive edge and leading market share, may benefit from overseas capacity expansion. CICC estimates overseas power battery capex growth could maintain 20-30% in 2026, potentially exceeding expectations.

**Solid-State Battery Tech Adds Valuation Upside** Long-term, solid-state batteries could break energy density limits, driving new equipment investment. Short-term, evolving preparation methods and materials may create valuation catalysts. Additionally, the upcoming acceptance results for first-phase solid-state battery projects could provide near-term momentum.

**Stock Picks** CICC recommends companies poised to benefit from lithium equipment capex growth and solid-state battery advancements, including Wuxi Lead Intelligent Equipment Co., Ltd. (300450), a key supplier for top battery makers, and Shenzhen United Winners Laser Co., Ltd. (688518), a low-valuation leader in 3C and lithium battery cycles.

**Risks** include weaker-than-expected energy storage project sustainability and delayed lithium equipment tenders.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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