China's Battery Makers Are Building 900 GWh of Storage Capacity as Export Rebates Fade

Overview

China’s battery sector is sending two signals at once: manufacturers are announcing a large new wave of stationary-storage capacity, while Beijing is phasing out export rebates that have helped keep Chinese solar and battery products cheap overseas, according to South China Morning Post and analysis of the Ministry of Finance’s joint statement with the State Taxation Administration.

What We Know

• Chinese battery makers unveiled more than 600 gigawatt-hours of new production capacity for the energy-storage market in the first two months of 2026, and the planned projects could reach 900 GWh of annual output once completed, with roughly 70% of that capacity aimed at stationary storage and 30% at EVs, according to South China Morning Post.
• S&P Global said China’s policy signals around the Two Sessions and the country’s 2025-2027 storage plan point to more than 180 GW of new energy-storage capacity, and industry insiders expect 2026 shipment growth of roughly 40% to 60%, according to S&P Global.
• Beijing announced on January 9 that the VAT export rebate for battery products would fall from 9% to 6% on April 1, 2026, and then be eliminated on January 1, 2027, according to a joint statement from the Ministry of Finance and State Taxation Administration reported by South China Morning Post.
• AP reported that the same policy is already expected to raise solar-panel prices in Africa, where transport costs, smaller import volumes, and tariffs already make Chinese equipment more expensive than in other regions, according to AP News.

What We Don’t Know

• It is still unclear how much of the announced 900 GWh buildout will be completed on schedule, or how much of the capacity will come from new investment rather than redirected EV supply chains.
• The eventual price impact of the rebate rollback is also uncertain, because exporters can absorb part of the cost, pass it on, or change discounting behavior.

Analysis

An inference from the reporting is that Beijing is trying to pull the battery industry toward domestic grid demand while making exports less subsidy-dependent. That matters because the same policy mix that supports China’s energy-storage buildout can also tighten margins abroad, especially in markets that rely on imported Chinese solar and storage gear, as AP News reported.

If the 40% to 60% shipment-growth range cited by S&P Global holds, China will remain the center of gravity for stationary-storage manufacturing even after the old rebate structure disappears. The practical result is a cleaner fit between industrial policy and climate infrastructure: batteries are being pushed closer to the power system that needs them, even as overseas buyers face a less subsidized price floor.