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The fatal blow to the industry behind the “hot” start of energy storage in 2025!

2025-04-29

Safety is something that has been said many times in the field of Energy Storage.
As new energy has been valued, the energy storage market has also been growing steadily in recent years, but its road to commercialization is still full of ups and downs. In the journey towards scale, safety, performance, and cost are like three "mountains" that must be climbed. In particular, safety issues are the top priority. It can be said that it is the cornerstone of energy storage development. Without safety, everything else is useless.
As the core pillar of energy strategic transformation, the safe development of energy storage technology affects the nerves of the entire industry. According to incomplete statistics from industry organizations, more than 9 energy storage accidents have been exposed worldwide in the first four months of 2025 alone. This data has sounded the alarm for the industry.

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Energy storage Power Stations are tortured by safety issues
In fact, the safety shortcomings of the energy storage industry are not concentrated in 2025, but with the large-scale commissioning of energy storage power stations, the frequency of its safety issues has significantly accelerated. In recent years, many energy storage safety accidents have revealed that the complexity of electrochemical energy storage safety issues is far beyond imagination, running through the entire chain of battery production, storage, transportation, system operation and maintenance, and occurring in various application scenarios such as household energy storage, industrial and commercial energy storage and large-scale energy storage power stations. Once casualties occur, the consequences are disastrous.
In the field of chemical energy storage, Lithium Batteries have a dominant position with a market share of more than 95%. However, due to the stability, energy density and side reaction characteristics of lithium battery materials themselves, it is difficult forenergy storage systems to achieve 100% safety, that is, it is difficult for lithium battery energy storage to achieve "intrinsic safety".
Focusing on my country's electrochemical energy storage power stations, prefabricated cabin lithium-ion Battery Energy storage power stations are the mainstream construction form, and their architecture covers four levels: battery cells, modules, battery clusters and battery cabins. Battery cells are integrated to form modules, which in turn form battery clusters, and finally form battery compartments with converters and other equipment. However, if there is a lack of safety management or inadequate risk prevention in the process of filling, formation, aging, storage and waste battery treatment, lithium-ion batteries are very likely to cause combustion or explosion accidents. In particular, when a large number of lithium-ion batteries and waste batteries are stored in an irregular manner, they may cause a violent chain reaction with great destructive power.

At the same time, the safe operation of energy storage power stations depends on the coordinated operation of units such as thermal management systems, energy management systems, battery management systems and energy storage converters to jointly ensure the safety and stability of energy storage power stations. However, the safety goals pursued by the industry require the use of better quality battery materials, advanced manufacturing processes and improved safety protection measures to reduce the probability of accidents and minimize the consequences of accidents, which will undoubtedly increase the construction and operation costs of Energy Storage Systems.
The reality is even more cruel. The average winning price of domestic energy storage systems in 2024 has dropped significantly compared with 2023. In order to seize the market, some companies have adopted a low-price strategy, resulting in the influx of inferior batteries into the market.
What is more worrying is that the previous mandatory storage policy has given rise to a "low price first" purchasing logic. When owners choose energy storage products, they often only focus on price and ignore safety, resulting in the phenomenon of "bad money driving out good money" constantly playing out in the market.
It has to be said that the low-price disorderly competition in the energy storage market has gradually been torn apart by a number of energy storage accidents, and behind it is a fierce game between safety and cost, quality and price. Although the low-price strategy can occupy the market for a short time, in the long run, ignoring safety will eventually lead the market into a vicious cycle.