- More than 3,600 exhibitors showcased next generation storage technologies, AI enabled energy solutions and large capacity battery systems at SNEC 2026 in Shanghai.
- Utility scale energy storage is standardising around 587 Ah and 588 Ah battery cells, alongside 6+ MWh storage systems and 3+ MW grid forming PCS technology.
- Computing and power coordination, long duration energy storage and market based operation models are emerging as key growth drivers for the sector.
The global energy storage sector is entering a new phase of value driven growth, according to InfoLink Consulting, who identified key industry trends showcased at the SNEC 19th International Solar Photovoltaic Power Generation and Smart Energy and Energy Storage Technology and Equipment Exhibition and Conference held in Shanghai from 3 to 5 June 2026.
Bringing together more than 3,600 exhibitors from China and international markets, the event highlighted rapid technological progress across utility scale storage, commercial and industrial storage, residential energy storage and power conversion systems. Despite ongoing uncertainty in global policy environments, innovation activity across the sector remains strong.
A central theme throughout the exhibition was the growing integration of energy storage with artificial intelligence applications and digital energy management systems. Industry participants reported that coordination between computing loads and electricity supply is moving beyond concept demonstrations towards commercial deployment, particularly in the fast growing AI data centre sector.
Battery pricing remained a major focus for manufacturers and project developers. As of the end of May, battery grade lithium carbonate prices stood at approximately RMB173,000 per tonne, while spodumene concentrate prices reached around US$2,500 per tonne. Elevated raw material costs continue to place pressure on battery manufacturers, although fierce competition among system integrators has limited the ability to pass higher costs through to end users.
Market data presented during the exhibition showed average prices for 314 Ah lithium iron phosphate battery cells at approximately RMB0.375/Wh, while utility scale storage systems averaged RMB0.58/Wh for two hour systems and RMB0.53/Wh for four hour systems.
Utility scale storage technology continues to evolve rapidly, with 587 Ah and 588 Ah battery cells emerging as the preferred format for next generation projects. Major manufacturers including CATL, Hithium and AESC have already entered mass production, while several other suppliers are expected to commence large scale manufacturing during the third quarter of 2026.
Although battery cells exceeding 600 Ah attracted significant attention at the exhibition, most remain at an early commercial stage. Industry experts noted that growing interest in larger battery formats is linked to the development of next generation storage systems capable of delivering more than 6 MWh of capacity per container.
At system level, manufacturers unveiled a range of storage products exceeding 6 MWh, with 6.25 MWh emerging as the most common configuration. Several suppliers also showcased long duration energy storage solutions capable of delivering up to eight hours of discharge.
The rapid growth of AI infrastructure was another major talking point. Companies including Haier New Energy, Star Charge, Lisiner and HYTOP Smart Control introduced solutions designed to integrate energy storage with high performance computing facilities. This reflects a broader market shift in which competition is moving beyond individual hardware products towards complete energy management ecosystems.
Regulatory changes are also improving the investment case for utility scale storage. New policy frameworks allowing standalone storage projects to receive capacity payments are creating additional revenue opportunities beyond traditional energy trading and ancillary services. Industry participants indicated that market based profitability is becoming increasingly achievable for standalone storage assets.
The commercial and industrial storage segment demonstrated strong momentum towards larger and more sophisticated systems. New liquid cooled energy storage cabinets equipped with 587 Ah battery cells were widely showcased, with suppliers focusing on higher efficiency, enhanced fire protection and intelligent monitoring capabilities.
At the same time, changing electricity tariff structures are encouraging the development of new business models. Rather than relying solely on peak and off peak arbitrage opportunities, developers are increasingly exploring microgrids, virtual power plants, dynamic capacity expansion services and transformer area energy storage solutions. These models are designed to capture value through participation in competitive electricity markets.
Residential energy storage also remains a strong growth segment. While incentive reductions in Australia have created some uncertainty, manufacturers reported continued demand strength and positive order pipelines.
Stackable all in one storage systems have become the dominant product format, driven by consumer demand for modular designs, simplified installation and flexible capacity expansion. Manufacturers are increasingly differentiating through brand strength, distribution networks and delivery capabilities as product offerings become more similar.
The use of 314 Ah battery cells is also expanding within residential applications, particularly across Asia, Africa and Latin America, where demand for higher capacity residential systems continues to grow.
In the power conversion system market, larger power ratings and grid forming functionality emerged as the defining trends. As utility scale storage projects increase in size, manufacturers are introducing PCS units exceeding 3 MW. Several leading suppliers displayed products capable of operating under weak grid conditions while providing voltage regulation and system stability services required by electricity networks with high levels of renewable energy generation.
Industry experts believe grid forming capability is rapidly becoming a standard requirement rather than a premium feature. As renewable energy penetration increases, these technologies will play a critical role in maintaining grid reliability and supporting the transition to cleaner power systems.
SNEC 2026 demonstrated that the energy storage industry is moving beyond a period defined primarily by scale and manufacturing expansion. The market is increasingly focused on technology leadership, application specific solutions and sustainable profitability.
Three themes stood out across the exhibition: computing and power coordination, long duration energy storage and market based operation of standalone storage assets. Together, these developments are reshaping the competitive landscape and creating new opportunities for companies capable of aligning innovation with evolving market requirements.
As the global energy transition accelerates, the companies best positioned for growth will be those able to combine technological innovation with strong commercial execution across an increasingly sophisticated energy storage ecosystem.
This article is based on market analysis and on site research conducted by InfoLink Consulting at SNEC 2026 in Shanghai.
Author: Bryan Groenendaal
