China's iron and lithium phosphate market grows with energy storage demand

The market for iron phosphate and lithium batteries in China is accelerating significantly, driven by the increasing demand for energy storage batteries and electric vehicles. The country's total installed energy storage capacity reached 769.7 gigawatt-hours in 2025, marking a 40.4% increase over the previous year, with 625.3 gigawatt-hours coming from iron phosphate and lithium batteries, reflecting a 52.9% annual growth. These batteries now account for 95.4% of the global energy storage battery market, while shipments of raw materials have more than doubled compared to the previous year. This has led to rising prices and positive impacts on production, with expectations of sustained growth in the coming years.

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