China’s energy storage tech exports: a buffer against the Iran war oil shock?

China’s exports of energy storage equipment are expected to keep rising as the US-Israeli war in Iran renews global calls for energy independence, industry insiders and analysts said.

The total export value of Chinese inverters – key components in energy storage systems – jumped 57 per cent year on year to US$1.66 billion for the first two months of 2026, Chinese customs data showed. Inverters convert electricity generated from batteries and solar panels into usable power for homes, businesses and industry.

“The increasing demand for energy storage [systems] is mainly due to the development of artificial intelligence globally … But the Iran war may push it to a new high,” said Xu Jianzhong, a freight forwarder specialising in such exports.

“The war in the Middle East will also lift overall costs, such as [prices for] raw materials.”

The conflict in the Persian Gulf has thrust energy security into the spotlight after Iran effectively closed the Strait of Hormuz, a strategic chokepoint that handles about 20 per cent of the world’s oil supply.

On Tuesday, however, Tehran announced it would reopen the strait under a two-week ceasefire agreement with the United States, brokered by Pakistan. A day later, it closed the waterway in response to Israeli attacks on Lebanon, Associated Press reported. Both sides have agreed to start negotiations in Islamabad on Friday.

The war had reinforced the need for energy independence and could drive strong growth in electrification and decarbonisation this year, said Tim Buckley, director of the Climate Energy Finance think tank in Sydney. “I would expect a surge in China’s battery and electric vehicle exports,” he added.

South China Morning Post