Energy Storage Cells in Short Supply: Industry Faces "Capacity Competition" How Can Companies Break Through?

Recently, the energy storage cell market has abruptly entered a state of tension. Tight production capacity and rising prices have become challenges faced by the entire industry. Leading brands have successively raised prices, some companies have suspended external supply, and major manufacturers have adopted measures such as securing production lines and locking orders to ensure supply. A "supply chain storm" triggered by supply-demand imbalance is sweeping across the entire battery energy storage industry.

Cell Prices Rise Across the Board, Forcing System Cost Increases

Industry disclosures indicate multiple cell manufacturers have initiated new price hikes, with increases concentrated between ¥0.02 and ¥0.03 per Wh. This shift has rapidly impacted downstream players, forcing system integrators to follow suit with price adjustments. For instance, Sungrow raised the price of its 257kWh energy storage cabinet by approximately ¥8,000 per unit, directly increasing project costs.

Industry insiders widely believe this is only the beginning of price adjustments. As the shortage persists, more companies may join the price hike trend in the third quarter to alleviate profit pressures.

Leading Players Secure Capacity, Supply Landscape Becomes More Segmented

Amid tight battery cell supply and surging demand, major energy storage manufacturers are taking decisive action. According to reports, Huawei has secured a long-term cooperation agreement with Sunwoda, securing exclusive access to certain production lines through 2027. Guoxuan High-Tech has reportedly “temporarily halted external supply,” prioritizing its own and strategic clients. CATL and EVE Energy are similarly securing resources through long-term agreements and advance payments.

This signals accelerating supply chain differentiation: companies with strategic clients and long-term partnerships will gain easier access to stable cell resources.

As a manufacturer with over a decade of expertise in energy storage, GSL ENERGY is actively addressing this challenge. Leveraging its own factories and global supply chain network, GSL not only provides customized battery systems but also ensures stable delivery for export projects through long-term partnerships with core cell suppliers. Recent energy storage deployments in Malaysia, the United States, Lebanon, and Israel directly demonstrate the resilience of its supply chain.

Overseas Demand Explodes, Supply-Demand Imbalance May Persist Until 2026

This supply-demand reversal stems from a mismatch between technological evolution and capacity expansion.

Technologically, large-capacity cells (314Ah and above) are rapidly replacing the outdated 280Ah specification. These new cells offer approximately 10% higher energy density and exceed 12,000 cycle life. Combined with containerized standardization, system costs have dropped by over 25%, accelerating global energy storage demand.

However, on the production side, industry capacity utilization rates remained below 35% in 2024, with limited enthusiasm for expansion among manufacturers. As global demand surged unexpectedly in 2025, orders from Europe, America, Australia, and New Zealand exploded, even leading to “priority production for premium-priced orders.”

A senior executive from a leading manufacturer disclosed that overseas inquiries surged over 200% year-on-year, with production lines operating at full capacity through December. Top players like CATL, Haichen Energy Storage, and Ruipu Lanjun all maintained capacity utilization rates above 90%, with some firms even halting new orders to avoid delivery risks. Industry projections suggest this tight supply situation may persist until Q1 2026.

Industry Recommendations: Plan Wisely to Ensure Supply Chain Stability

Amid shortages and price hikes in energy storage cells, many industry experts urge businesses to avoid panic stockpiling and price speculation, as these actions exacerbate market volatility. The key to stability lies in placing orders based on actual needs and establishing long-term partnerships with cell suppliers.

In this regard, GSL ENERGY has its own approach. Leveraging its in-house R&D and manufacturing capabilities, it offers OEM/ODM customized battery energy storage solutions and has built a more resilient supply chain system. This enables the company to safeguard stable returns for its customers amid industry price fluctuations.

Conclusion

The energy storage industry is currently navigating a period of rapid and intense change. On one hand, market demand is surging; on the other, production capacity remains strained. The situation of rising cell prices and supply shortages is expected to persist in the short term. For companies within the industry, this is no longer merely a business challenge—it represents a true test of supply chain management and strategic positioning. Those who can stabilize deliveries and proactively position themselves will gain a competitive edge in the next round of market competition.