At the 2025 World Energy Storage Conference, Zeng Yuqun, founder and chairman of Contemporary Amperex Technology Co., Limited (CATL), stated that during this critical period of energy storage industry transformation, it is essential to maintain an objective understanding of the industry's situation. It is necessary to fully acknowledge achievements while clearly recognizing current challenges to truly promote high-quality industry development.

Zeng Yuqun outlined several key challenges facing the energy storage industry:

First, safety risks require heightened attention. According to incomplete statistics, 167 major safety incidents have occurred globally through May this year. As energy storage systems are called upon more frequently, energy storage facilities face enormous safety challenges. Many critical energy storage nodes cannot rest and must operate continuously.

Second, price competition is exceptionally fierce. Energy storage system prices have dropped approximately 80% over three years, with recent procurement projects seeing winning bids as low as 0.4 yuan/Wh, severely below cost levels. Such destructive low pricing inevitably leads to cost-cutting measures that create quality and safety hazards for the industry. He noted that price wars have now spread overseas, not only causing energy storage companies' profit margins to shrink rapidly but ultimately proving counterproductive. "We finally developed this advantageous industry in China, and now we're about to enter a phase of self-competition, then export this internal competition overseas," he said.

Third, products suffer from inflated specifications and false marketing. Many companies make claims about product parameters and warranty lifecycles without proper backing. Based on operational results, the actual operating life of some projects falls far short of promises. "What does far short mean? Less than 25% of the promised timeframe," he explained.

Fourth, technology homogenization issues are emerging. With capital backing, many companies choose shortcuts, favoring imitation and copying over independent innovation and research. "Innovation and R&D require significant investment, but if everyone wants shortcuts, who will innovate?" he questioned.

Fifth, disorderly expansion and herd mentality prevail. Currently, over 300,000 energy storage companies are registered. Full market liberalization will accelerate industry consolidation, with many companies facing elimination. This will create "orphaned power stations" - facilities where companies have shut down operations, leaving maintenance responsibilities to society and the state.

He emphasized that these problems reflect an industrial ecosystem that still needs improvement. To achieve high-quality energy storage development, an innovative industrial ecosystem must be established.