The report states that 2025 marks the first year of large-scale commercial production for flow batteries. Driven by the implementation of energy storage policies, the industry has achieved breakthroughs in technology, market demand, and production capacity, transforming flow batteries from experimental products into one of the mainstream choices in the energy storage market. By the end of 2025, China's cumulative installed capacity of flow batteries reached 2,214 megawatts/9,139 megawatt-hours, representing a year-on-year increase of over 100%. New installations during the year totaled 1,114 megawatts/4,705 megawatt-hours, with growing demand for energy storage paired with wind and solar power.
Vanadium redox flow batteries dominate the market, accounting for 1,073 megawatts of new installations in 2025—96.4% of total new capacity. Other battery technologies, such as iron-chromium and zinc-based systems, have undergone technical optimization and are now suited to specific applications including cold-climate wind and solar bases, industrial and commercial microgrids, and off-grid power supply. Applications are primarily focused on grid-side and renewable energy integration, with projects concentrated in northwestern and southwestern regions rich in wind and solar resources, particularly Xinjiang and Yunnan.
Eight industry standards have been established domestically, requiring minimum system efficiency of no less than 65%. Mainstream vanadium flow batteries achieve efficiencies between 75% and 80%, with cycle life exceeding 20,000 cycles and stack power density doubling, enabling the construction of large-scale energy storage stations. The average storage duration of operational projects in 2025 was 4.2 hours, while batch deployment of long-duration projects (5–8 hours) began, effectively smoothing out intermittent generation from renewables and supporting grid peak shaving.
Flow batteries use aqueous electrolytes, making them inherently resistant to fire and explosion. Equipped with eight safety protection measures and featuring recyclable electrolyte, they meet green and low-carbon requirements. By the end of 2025, domestic industry capacity reached 15 million kilowatts/62 million kilowatt-hours, covering the entire upstream-to-downstream supply chain. Total investment exceeded 30 billion yuan, with 51 new production lines added throughout the year, accelerating the development of industrial clusters.
Costs have significantly declined compared to earlier years. In 2025, the average price of vanadium-based energy storage systems was 2.28 yuan per watt-hour, with electrolyte and stacks being the main cost components. However, industry weaknesses remain evident: equipment prices are still two to three times higher than those of lithium batteries, most projects yield returns below 8%, and payback periods stretch up to 10 years. Cost reduction and efficiency improvement remain top priorities.
According to national plans, total new energy storage capacity across China will exceed 180 gigawatts by 2027, with gigawatt-scale flow battery projects launching in northwest renewable energy hubs. Revenue channels for energy storage continue to expand, forming diversified income models through electricity trading, ancillary services, and capacity compensation. The report forecasts that China’s newly installed flow battery capacity will surpass 1.4 million kilowatts in 2026, with cumulative capacity reaching approximately 3.6 million kilowatts. By 2030, total industry capacity is expected to reach 10.6 million kilowatts, with renewable energy base pairing and grid-independent storage becoming core growth drivers.
The report predicts a fundamental shift in industry competition dynamics. Future success will no longer hinge solely on individual materials or component performance but on comprehensive capabilities encompassing stack design, electrolyte recycling, system integration, intelligent control, and end-to-end engineering delivery. As the rigid demand for long-duration storage continues to grow, capacity pricing policies take effect, and costs across the entire value chain steadily decline, flow batteries will leverage their unique advantages—high safety, ultra-long lifespan, high capacity, and decoupled power-capacity characteristics—to address gaps in China’s new energy storage technology ecosystem. They will support large-scale integration and consumption of wind and solar power, becoming a key pillar in building a safe and efficient modern power system and advancing nationwide carbon peak and carbon neutrality goals.
Industry experts note that the sector will accelerate beyond mere price-driven competition, shifting toward a focus on technological value and lifecycle economic efficiency, continuously driving high-quality, large-scale development of the flow battery industry.
