China industrial energy storage surges as metallurgical plants seek reliable power

Metallurgical plants

China industrial energy storage is rapidly expanding as metallurgical and chemical plants pair rooftop solar with behind-the-meter batteries. China industrial energy storage is growing on the back of record solar additions and rising concerns over power curtailments. As a result, China industrial energy storage is emerging as a key pillar of corporate decarbonisation and energy security strategies.

Metallurgical users lead China industrial energy storage build-out

China’s installed solar capacity reached 1,130GW by the end of September, up 46pc year on year. Meanwhile, user-side energy storage additions hit 0.24GW and 0.49GWh that month, still modest but growing quickly. Industrial and commercial customers accounted for more than 95pc of these user-side systems, underlining where the strongest business case now lies.

Projects from metallurgy, chemical and textile companies made up 73pc of new user-side capacity. This confirms that carbon reduction and power reliability are now core drivers of China industrial energy storage. Heavy users are installing co-located solar PV and batteries to cut emissions, stabilise operations and hedge against grid disruptions. For metals producers, such systems can protect continuous furnaces and electro-intensive processes from costly outages.

LFP batteries dominated the new capacity, accounting for 99.96pc of installations. However, a 90kW, 180kWh sodium-ion system also came online for an industrial user, signalling gradual diversification. Behind-the-meter solar-plus-storage projects allow factories to maximise on-site solar output and store surplus for peak hours. They also reduce exposure to curtailment and potential policy shifts in grid pricing.

Regional hotspots and scaling trajectory for China industrial energy storage

User-side energy storage growth is highly regional. Fifteen provinces commissioned new projects in September, with eastern hubs leading activity. Eastern China represented 71pc of new capacity and 43pc of project numbers, reflecting dense industrial clusters and stronger grid constraints. Jiangsu contributed nearly half of national new capacity, while Zhejiang led on project count with more than 20pc.

Zhejiang, Guangdong and Jiangsu together recorded more than 740 new user-side projects. Project numbers declined by 9pc year on year, yet total capacity jumped 68pc. This shift shows a clear move toward larger, higher-capacity China industrial energy storage systems. Bigger battery blocks better match the load profiles of smelters, rolling mills and chemical complexes.

Overall, China commissioned 3.08GW and 9.08GWh of new energy storage in September, including utility-scale systems. That represented annual growth of 166pc and 200pc, respectively. For the third quarter, new capacity reached 9.16GW and 25.52GWh, up 10pc and 24pc year on year. Installations between January and September already equalled 74pc of the 2025 full-year total, suggesting this year will exceed last year’s deployment. This trajectory ensures China industrial energy storage will remain a central pillar of the country’s broader storage boom.

The Metalnomist Commentary

China’s metals and chemicals producers are quietly driving a structural shift toward on-site solar-plus-storage. For industrials facing both decarbonisation pressure and fragile grid reliability, user-side batteries offer a rare win-win. The next test will be whether policy and market design can keep pace with the speed of industrial adoption.