Under the wave of green energy transition, energy storage equipment manufacturers are entering a golden era—an in-depth analysis of investment opportunities in 2025

As global climate change intensifies and net-zero carbon emission targets advance, the energy storage industry is becoming a core driver of the energy revolution. From the widespread adoption of electric vehicles to the large-scale integration of renewable energy sources such as wind and solar power, energy storage equipment manufacturers have already become focal points in the capital markets. This article will systematically analyze investment opportunities in energy storage, helping investors understand this rapidly growing industry.

Overview of the Energy Storage Industry Chain: Who Benefits?

To understand the investment value of concept stocks in energy storage, one must first grasp the complete structure of the industry chain. Energy storage is not an isolated technology but an ecosystem spanning multiple segments.

Battery Manufacturing — The Key Upstream Sector

The core of energy storage systems lies in batteries. Whether lithium-ion, solid-state, or sodium-ion batteries, these storage devices manufacturers hold the technological high ground. Challenges faced by battery makers include raw material volatility (unstable prices of lithium, nickel, cobalt) and fierce competition from international giants. In the Taiwan market, Xinshengli (4931) and Changyuan Technology (8038) are representative companies in this field.

System Integrators — From Components to Complete Solutions

Energy storage device manufacturers not only supply batteries but also need to integrate inverters, battery management systems, and energy management systems to deliver comprehensive energy storage solutions. This is where system integrators add value. Taiwanese companies such as Huacheng (1519), Yali (1514), and Zhongxing Electric (1513) hold important positions in this domain, capable of transforming complex technologies into practical applications.

Power Infrastructure and Grid Connection Services

Integrating energy storage systems into the grid requires professional engineering support. Providers of transformers, distribution panels, and power engineering infrastructure also play vital roles. Companies like Zhongxing Electric, Huacheng, and Yali are involved in this area.

Upstream Raw Materials and Downstream Components

Upstream raw materials such as cathode materials, electrolytes, and separators, along with downstream components like battery management systems, cooling equipment, and power conversion systems, collectively support the entire industry ecosystem. Formosa Plastics (6505)’s investment in electrolytes is a typical example.

Global Energy Storage Concept Stocks Map: US vs. Taiwan Stocks

Below are the main energy storage concept stocks selected based on market capitalization, stock performance, and annual gains:

Major US Energy Storage Concept Stocks

Major Taiwan Energy Storage Concept Stocks

Data source: Google Finance, updated to September 3, 2025

Deep Dive into US Energy Storage Equipment Manufacturers

GE Vernova (NYSE: GEV) — The Leader in Growth

GE Vernova leads US energy storage stocks with a 76.23% annual increase, with the stock price reaching $579.68. As a global leader in energy technology, the company has deep expertise in energy storage equipment manufacturing and renewable energy integration, benefiting from accelerated global green energy investments.

NextEra Energy (NYSE: NEE) — Scale and Growth Coexist

As the largest utility company by market value globally, NextEra Energy has substantial assets, with revenue of approximately $24.75 billion in 2024. Its subsidiary, NextEra Energy Resources, focuses on wind, solar, and energy storage. In Q2 2025, adjusted EPS was $1.05, up about 9% year-over-year. The company added 3.2 GW of renewable and energy storage projects, with total capacity exceeding 10.5 GW, demonstrating leadership in AI and data center energy demands. Analysts’ average target price is around $84–86, with upside potential of 15–20%.

Enphase Energy (NASDAQ: ENPH) — Investment Opportunity Amid Policy Risks

Enphase Energy is a key supplier of solar microinverters and energy storage systems, currently trading at about $36.98, with a price-to-revenue ratio of approximately 3.2–3.7. In 2024, revenue was $1.46 billion; estimates for 2025 vary. Q2 revenue of $363 million exceeded expectations, but Q3 guidance is only $330–370 million, indicating demand remains weak. US residential solar subsidies may end by year’s end, adding uncertainty. Some brokers like TD Cowen have downgraded to Hold, with a target price of $45–55. Investors should adopt a cautious stance, viewing it as a medium- to long-term observation target.

Fluence Energy (NYSE: FLNC) — A Global Leader in Energy Storage Solutions

Fluence Energy, launched jointly by Siemens and AES in 2018, is a leading global provider of energy storage products and services, operating in 47 markets worldwide. In Q3 2025, EPS was $0.01, beating expectations, but revenue dropped to $603 million, well below the anticipated $770 million. Operating profit slightly recovered, gross margin compressed to about 15.4%, mainly due to delays in US capacity expansion and supply chain challenges. Management maintains the full-year revenue target of $2.7 billion for 2025 and expects existing orders to gradually convert into actual revenue in 2026.

EnerSys (NYSE: ENS) — Steady Industrial Storage Solutions Provider

EnerSys is a leading global provider of industrial energy storage solutions, with over 11,000 employees across more than 100 countries. Main products include energy systems, motive batteries, specialty batteries, and chargers. In Q1 2025, the company posted strong results: adjusted EPS of $2.08 and revenue of $893 million, both exceeding expectations. The company’s market cap is $3.86 billion, with a P/E ratio of only 11.8, and a dividend yield close to 1%, attractive for conservative investors.

Leading Taiwan Energy Storage Companies: Who Can Rise?

Delta Electronics (2308) — The Top Performer in Energy Storage Equipment

Founded in 1971, Delta Electronics is a leader in the global inverter and battery management solutions market. In Q2 2025, consolidated revenue reached NT$124.035 billion, up about 20% year-over-year, setting a quarterly record; net profit after tax was NT$13.948 billion, up 40%, with EPS of NT$5.37, a historical high. Gross margin at 35.5% and operating margin at 15.1% significantly outperformed previous periods, reflecting strong performance in high-margin products and process optimization. R&D investment and US capacity expansion will be intensified in the second half, with growth momentum highly anticipated.

Teco Electric & Machinery (1504) — A Diversified Energy Solutions Provider

Founded in 1956, Teco Electric & Machinery started with electric motors and has developed into a comprehensive enterprise spanning motor systems, smart energy, and smart living. In Q2 2025, consolidated revenue was NT$15.6 billion, up 7.4%, but due to costs and exchange losses, EPS was NT$0.69, with a half-year EPS of NT$1.23, down about 8%. The company maintains a solid financial structure, paying NT$2.2 in cash dividends per share in the first half, with a yield of about 4.2%, attractive for long-term investors. Teco is actively pursuing AI data center and smart energy opportunities through acquisitions like NCL Energy and strategic cooperation with Hon Hai.

Why Is the Energy Storage Industry Worth Investing In?

Policy Support Driven by Climate Goals

According to the Intergovernmental Panel on Climate Change (IPCC), to keep global warming within 1.5°C above pre-industrial levels, global carbon emissions must be halved by 2030 and reach net-zero by 2050. This entails continuous investment in energy transition, providing stable market demand for energy storage equipment manufacturers.

Explosive Growth in Storage Demand

Forecasts from BloombergNEF and DNV indicate that global cumulative energy storage capacity will surpass TWh levels by 2030, with most capacity supplied by lithium-ion batteries. This creates enormous opportunities across the entire industry chain.

Falling Costs of Renewable Energy Drive Applications

Research from Imperial College London shows that in the first three months of 2023, wind power supplied 32.4% of UK electricity. As technology advances, previously costly energy sources like wind and solar have become profitable. However, wind farm output is variable, with negative electricity prices during early morning hours, making energy storage facilities essential for the widespread adoption of renewable energy.

AI Era’s Surge in Power Demand

With large-scale commercial use of AI, data centers’ electricity consumption will increase significantly, demanding more stable power supply and energy storage capabilities. Companies like NextEra Energy are already seizing opportunities in this field.

Risks and Recommendations for Investing in Energy Storage Stocks

Investors should recognize that some energy storage companies may lack technological competitiveness, especially new entrants with weaker fundamentals. If they fail to achieve long-term profitability or experience declining revenues, their stock prices could face significant pressure. Careful stock selection, continuous monitoring of fundamentals, and risk control are crucial.

Additionally, R&D outcomes in high-tech sectors may not always be marketable or profitable. When fundamentals or technical aspects reverse, investor discipline and risk management will be key to ultimately realizing gains.

Summary: Long-term Trends and Short-term Opportunities

Clean energy relies on storage technology. In the foreseeable future, countries will continue to increase investments, and policy announcements may stimulate market speculation. Investors can seize these opportunities to enter.

However, the development of energy storage is not without challenges. Converting R&D results into commercial profits takes time and market validation. Investors need to grasp industry long-term trends while managing risks carefully, only then can they truly profit in the golden age of energy storage.