[Energy Storage: Boshi Energy Storage's First Product Rolls Off 587Ah Large-Capacity Cell PACK Production Line]

[SMM Analysis] This week, the energy storage battery cell market showed structural divergence, with demand for utility-scale energy storage remaining stable, the supply-demand pattern remaining tight, and mainstream product prices holding steady overall; residential ESS was affected by weakening demand expectations outside China and earlier inventory accumulation, with integrators' cargo pick-up pace slowing and some residential battery cell quotes revised downward.

[SMM Analysis] In H1 2026, shipments of power batteries and ESS batteries in China reached approximately 723 GWh and 463 GWh, respectively, while shipments of LFP batteries for backup power in communication base stations were about 6.4 GWh, with the overall scale being relatively small. Unlike utility-scale energy storage, backup power for communication base stations has the typical nature of infrastructure assurance; its demand is more determined by the installed base of communication networks, equipment renewal cycles, and backup reliability requirements. As China's communication infrastructure construction gradually matures, the market driver is shifting from deployments for new base stations to the replacement of existing lithium batteries and the substitution of lead-acid batteries with LFP batteries. At the same time, improvements in energy management capabilities at some sites may further expand battery usage scenarios, but this will not alter the fundamental nature of communication backup power, which centers on reliable power supply. Overall, backup power for communication base stations is more like a niche lithium battery market with limited scale but relatively stable demand, continuously supported by upgrades of existing assets and technology substitution.

As "full capacity" and "flooded with orders" became the truest reflections of the ESS sector in H1, a growth wave driven by both AI computing power and the energy transition is propelling the global ESS battery market to unprecedented heights. Data from the National Energy Administration shows that in H1, investment in key energy projects in China maintained positive growth despite last year's high base, with new-type energy storage up 74.3% YoY. As of end-June, completed and operational new-type energy storage installations nationwide reached 153 GW/396 GWh (153 GW/396 GWh), up 61% YoY. Compared with the end of 2025, when the figures stood at 136 GW/351 GWh (136 GW/351 GWh), this implies new installations of 17 GW/45 GWh in H1.