Driven by the "dual carbon" goals, the energy storage industry, as the core support of the new power system, is undergoing a critical transition from policy-driven to market-driven.

In this wave, we have noticed that more and more energy storage companies have emerged. Today we are going to analyze a company headquartered in Hunan - CATL (600478.SH).

With its forward-looking national layout and industrial chain collaboration strategy, in 2024, Corun completed a breakthrough from 0 to 1 in its large-scale energy storage ecological strategy; in 2025, the company continued to deepen its consortium model , and its energy storage business has entered a dual growth channel of large-scale implementation and benefit release.

In a recent investor relations communication event, the company disclosed project dynamics and interim financial data, which clearly revealed the growth logic and profit potential of its energy storage business as a "strategic engine."

Policy dividends combined with regional demand have led to an iterative upgrade in the revenue model of energy storage power stations.   

Since 2025, a series of policies, including Document No. 136, Document No. 394, and Document No. 1192, have been released, accelerating the energy storage industry's shift from policy dependence to market autonomy. In an investor conference, Corun noted that within this transformational context, the role of energy storage power stations as the "ballast" of the power grid is becoming increasingly prominent. Energy storage demand is exploding, especially in regions with high levels of both installed renewable energy capacity and electricity demand.

Pan Lixian, President of Corun, previously stated that, in the medium and long term, Document No. 136 will contribute to the healthy development of the new energy and energy storage industries, accelerating the industry's transition from a product- and technology-driven "old cycle" to a value- and scenario-driven "new cycle," and will be conducive to the rapid development of independent energy storage power stations. Furthermore, prior to the introduction of the "anti-involutionary" policy, Corun was already actively exploring ways to break through the industry's bottleneck.

According to reports, taking Hebei Province, where Corun is a core player, as an example, the two independent energy storage power stations (total capacity: 300MW/600MWh) currently connected to the grid in Jingxing, Shijiazhuang, and Wangdu, Baoding, employ a revenue model combining medium- and long-term trading, capacity compensation, and ancillary services. With medium- and long-term trading as the primary source of revenue, the actual investment returns have exceeded expectations. Notably, Hebei's electricity spot trading has entered its trial phase. Upon official implementation, it is expected that the Jingxing power station will upgrade to a "parallel medium- and long-term trading + spot trading" model, adding revenue from capacity leasing and ancillary services, further diversifying its revenue structure.

In terms of trading mechanisms, medium- and long-term transactions primarily operate on a daily or longer cycle (e.g., year, quarter, month), utilizing a combination of off-site negotiation and on-site competition. Hebei Province has more clearly defined peak and off-peak periods and coefficients. Spot trading, on the other hand, operates on a 15-minute interval, covering day-ahead, intraday, and real-time cycles, placing higher demands on the refined management capabilities of power plant operations. With its high construction standards, experienced operations team, and keen understanding of power trading, Corun is able to highlight its competitive advantages under the spot trading model, laying the foundation for increased returns on subsequent projects.

From 4GWh to 15GWh: Nationwide deployment opens up incremental space

Corun's energy storage ambitions extend beyond regional expansion. Disclosed information indicates the company has already commenced or is about to commence construction of independent energy storage power stations with a capacity of at least 4GWh. These will be gradually released in the third and fourth quarters of 2025 , encompassing eight projects in four provinces: Hebei (600MW/2200MWh), Shandong (200MW/400MWh), Inner Mongolia (300MW/1200MWh), and Guangdong (100MW/200MWh).

In addition, the company has reserved more than 30 energy storage application scenario projects of various types, with a total scale of over 15GWh , including 5GWh in Hebei, 2.4GWh in Shandong, 2GWh in Guangdong and Guangxi, 1.4GWh in Jiangsu and Zhejiang, 3GWh in Inner Mongolia, and 3GWh in Xinjiang. The scale of projects that meet investment conditions has exceeded 6GWh.

The logic behind this nationwide deployment stems from both the differentiated needs of regional energy structures and the scarcity of high-quality locations. For example, in Hebei, the current scale of energy storage power stations in the province has yet to match the output of wind and solar power, and each county has only one 220kV substation, making high-quality energy storage sites inherently scarce.

Corun stated that the power grid will upgrade its substation scale and capacity over the next two to three years, allowing the company to simultaneously pursue its reserve projects for rapid implementation. Regions rich in new energy resources, such as Inner Mongolia and Xinjiang, as well as high-powered areas like Jiangsu, Zhejiang, and Guangdong, are key areas for the company's energy storage business expansion. After dynamically evaluating the policies and economic feasibility of each region, reserve projects will be gradually converted into actual production capacity.

From the perspective of performance goals, CATL clearly stated in its 2025 stock option incentive plan that performance growth in the next three years will mainly rely on the energy storage business. This plan echoes the current pace of project advancement and also provides a clear expectation for the scale expansion of the energy storage business.

Industry chain collaboration breaks the profit dilemma

Amidst intensifying competition and rising cost pressures in the energy storage industry, Corun is exploring ways to increase profits by building a collaborative ecosystem within the industry chain. The "Large Energy Storage Innovation Consortium," which Corun spearheaded, focuses on closing the "natural mine-urban mine" industry chain loop, achieving a deep connection between upstream resource supply and end-user energy storage demand. This collaborative approach among upstream and downstream companies not only reduces operating costs across the entire industry chain but also creates incremental market share, strengthens profitability across all links, and addresses the industry's widespread challenges of high costs and low profits.

From a business perspective, Corun's energy storage business currently relies primarily on revenue from energy storage cabinet sales and dividends from power station operations. However, industry chain collaboration will further optimize the profit structure. For example, cost control on the upstream resource side can reduce raw material costs for energy storage cabinet production, while the scale of downstream power station operations can enhance the stability of dividend income, forming a profit growth model driven by both "production and operations."

Furthermore, the technological advantages of Corun's independent energy storage power stations are further highlighted in their competition with thermal power plants. In Hebei Province, thermal power plants primarily handle primary frequency regulation, while independent energy storage power stations focus on secondary frequency regulation. The two complement each other rather than replace each other. Furthermore, energy storage power stations offer faster response times and more precise and smooth frequency regulation, making them more adaptable to the new power system's demand for flexible resources. This technological advantage not only ensures the operational efficiency of the power stations but also supports their ability to generate additional revenue in the ancillary services market.

Judging from the business progress in 2025, CATL has clearly listed energy storage as one of its three major strategic businesses, among which nickel batteries are mature businesses, lithium battery materials are growth businesses, and energy storage is a strategic business . It has gradually built up differentiated competitive advantages through the three major levers of policy grasp, regional layout, and industrial chain collaboration.

With the gradual release of 4GWh of projects under construction, the orderly transformation of 15GWh of reserve projects, and the full launch of the electricity spot market , the company's energy storage business is expected to enter a period of large-scale growth and become the core engine driving performance growth.

For the energy storage industry, CATL's exploration also provides a reference path for the industry: taking regional demand as the entry point, improving short-term profits through refined operations; opening up long-term growth through a nationwide layout; and solving cost problems through industrial chain collaboration.

As energy storage moves from a "supporting role" to a "leading role," companies with clear strategic planning and core competitiveness will be able to seize industry dividends more easily. Coryon's energy storage story may have just begun.