At the "2026 Finance Annual Conference: Forecast & Strategy" and 2025 Global Wealth Management Forum held in Beijing from December 18-20, 2025, Meng Xiangfeng, Party Committee Secretary and Vice President of CATL (Contemporary Amperex Technology Co., Limited.), analyzed the current energy storage industry landscape.
Meng noted that this year's global energy storage boom stems from dual drivers in supply and demand. On the demand side, the growing share of renewable energy has created urgent need for flexible regulation resources. On the supply side, lithium battery storage technology has achieved breakthroughs in deployment flexibility, rapid response, and bidirectional regulation. Crucially, lithium battery storage now matches pumped hydro in cost-effectiveness, making it an attractive investment and core growth driver.
He emphasized that battery technology continues evolving, with full lifecycle advantages becoming more pronounced. This expansion isn't temporary—long-duration energy storage markets will sustain growth with promising prospects.
Regarding pricing mechanisms, Meng advocated market-based systems over policy subsidies, stating they better demonstrate storage's value and returns. He called for equal pricing treatment with other regulation resources like pumped hydro and thermal power's capacity pricing, which could further energize the industry. "We welcome market mechanisms—they enable better lithium battery storage development," Meng stressed.
In emerging applications, lithium batteries dominate 90% of new energy storage installations. Beyond vehicles and storage, applications are diversifying: over 900 electric vessels operate in inland and coastal waters; demand grows in drone and robotics components; and storage supports data centers and AI energy needs.
Simultaneously, lithium batteries aid decarbonization in traditional industries. CATL has partnered with companies like Kweichow Moutai to electrify steel, cement and other sectors through storage-integrated solutions, revealing substantial cross-industry potential.
Globally, CATL has shifted from pure exports to combined "investment+trade" strategy, with three European plants: Germany operational, Hungary producing modules (cells Q1 2026), and Spain/Indonesia under construction, plus a U.S. technical collaboration facility.
Addressing overseas challenges, Meng urged Chinese firms to compete responsibly abroad by respecting local norms and prioritizing quality over price wars. "Some export unhealthy domestic competition—cutting corners on quality and rules. This damages China's manufacturing reputation. We advocate high-quality globalization and fair competition—don't export cutthroat practices," he cautioned.
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