Battery Price War: China's Oversupply Cuts Storage Costs 45%

In 2025, Chinese battery manufacturers, having built twice the global demand in factories, slashed prices to maintain production, driving stationary storage pack costs down to $70 per kilowatt-hour—45% cheaper than the previous year. This follows China's earlier pattern of flooding markets with cheap solar panels and electric vehicles, the latter provoking tariffs from Washington and Brussels. The steep price decline is reshaping how power companies calculate electricity costs during peak hours. However, analysts question if these price levels are sustainable given the economic pressures on manufacturers.