Bernstein Global Energy Storage Battery Weekly: ESS, LFP and new battery technologies remain the industry’s main themes

Overview

This report is Bernstein’s global energy storage battery weekly released on 2026-05-26, covering battery, energy storage, EV, and materials-chain news across the United States, Asia, Europe, and Australia. The report focuses not on forecasts for a single company, but on tracking industry events, supply-chain changes, technology pathways, and regional investment dynamics. Overall, the information shows that ESS demand, LFP cost-reduction pathways, solid-state/semi-solid-state batteries, silicon anodes, separators, recycling, and storage for data centers remain key industry focus areas.

Core views

The core views are as follows: first, energy storage demand is reshaping the battery industry chain, and Ford’s Kentucky plant shifting to an ESS-oriented LFP solution, Sungrow’s large Middle East order, and GoodWe’s rising share in Australian residential storage all reflect this trend. Second, LFP continues to spread from China’s supply chain to global automakers and Korean material systems, and events involving Stellantis, L&F, and Ford all show LFP’s appeal in terms of cost and scalability. Third, new battery technologies are advancing quickly, but commercialization remains layered: Ganfeng’s 500Wh/kg solid-state battery is still at the small-batch stage, SVOLT’s semi-solid-state battery is closer to near-term mass production, and POSCO Future M’s silicon-anode plan targets commercial supply in 2028. Fourth, supply-chain localization and rebalancing are underway, with projects in Europe, Spain, Australia, Vietnam, and the Middle East showing regional expansion in battery materials, recycling, storage deployment, and battery swapping for two-wheelers.

Analysis framework

The report uses a weekly event-tracking approach, organizing news, company announcements, and industry project progress by region and supply-chain segment, and interpreting them in the context of Bernstein’s existing company models, industry models, and historical research framework. It focuses on orders, capacity, technical metrics, mass-production schedules, supplier shifts, policy funding, and changes in application scenarios.

Methodology notes

• Industry weeklyGlobal battery and energy storage news flow tracking

  Track battery, ESS, EV, and materials events by region and supply-chain segment

  This report is not a full in-depth report; instead, it summarizes news affecting the battery value chain over the week across the United States, Asia, Europe, and Australia to help investors identify short-term catalysts and medium-term industry trends.

• Industry modelGlobal ESS TAM / Battery TAM / Battery supply and demand

  Use storage TAM, battery TAM, and supply-demand models as the background framework

  The report lists Bernstein’s relevant industry models, indicating that its tracking focus includes EV demand, ESS demand, gigafactory capacity, materials supply and demand, and battery technology pathways.

• Rating disclosureBernstein equity ratings definitions

  12-month relative-performance definitions for Outperform, Market-Perform, and Underperform

  The appendix states that Bernstein stock ratings are based on expected relative performance versus the relevant market index over the next 12 months, but this weekly report itself does not provide new rating changes for covered companies.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• CATL

  Core participant in LFP technology and the global supply chain

  Strengths

  Mentioned in Ford Kentucky’s LFP conversion, Xiaomi battery cooperation, and Bernstein’s prior research, showing strong technological and supply-chain influence.

  Weaknesses

  Global expansion may face trade, policy, and customer localization pressures.

  Comparison

  Compared with Korean battery equipment makers and some battery manufacturers, CATL’s LFP and ESS technology has greater cost and scale advantages.

  Risks

  Geopolitical tensions, tariffs, overseas customer de-risking, and price competition.

• Sungrow

  Utility-scale ESS and PV inverter supplier

  Strengths

  Won Masdar UAE RTC’s 7.5GWh storage system order and 2.6GW inverter order, and previously secured Saudi Arabia’s 7.8GWh storage project, reinforcing its position in Middle East large-scale storage.

  Weaknesses

  Delivery of large projects and overseas operations require strong execution, service, and regional compliance capabilities.

  Comparison

  It stands out in large Middle East storage orders and benefits more directly than general residential-storage or component suppliers from utility-scale ESS expansion.

  Risks

  Project delays, price competition, local certification, and system reliability under extreme climate conditions.

• Putailai New Energy Technology

  A battery separator and materials supply-chain expansion company

  Strengths

  Plans to invest CNY 5.6 billion to expand separator base-film capacity by 7.2 billion square meters, helping improve self-sufficiency and ease bottlenecks.

  Weaknesses

  The expansion cycle is long, with Phase I not reaching trial production until 2027 and Phase II not starting until 1Q 2028, limiting near-term contribution.

  Comparison

  Compared with a single outsourced base-film model, vertical integration can improve cost and supply stability.

  Risks

  Overcapacity, price declines, weaker-than-expected customer demand, and project delays.

• Ganfeng Lithium

  A lithium-resource company advancing solid-state battery technology

  Strengths

  500Wh/kg lithium-metal solid-state batteries have entered small-batch production, and 400Wh/kg products have exceeded 1,100 cycles and completed engineering validation.

  Weaknesses

  Solid-state batteries are still in the early commercialization stage, and scale cost and mass-production consistency remain to be proven.

  Comparison

  Compared with semi-solid-state routes, fully solid or high-energy-density solid-state routes have higher potential performance but greater implementation difficulty.

  Risks

  Failure to scale technology, excessive costs, long application-certification cycles, and lithium price volatility.

• SVOLT

  A semi-solid-state battery mass-production promoter

  Strengths

  Plans to start semi-solid-state battery series production in September 2026, earlier than its original 2027 target.

  Weaknesses

  The first generation is about 300Wh/kg and still needs validation in vehicle introduction, yield, and cost competitiveness.

  Comparison

  Compared with fully solid-state batteries, semi-solid-state is closer to near-term commercialization.

  Risks

  Mass-production delays, weaker-than-expected customer adoption, and insufficient safety and lifecycle validation.

• POSCO Future M

  A silicon-anode and Korean battery-material supplier

  Strengths

  Already has silicon-anode mass-production technology, targets commercial production in 2028, and testing shows high-silicon-content batteries retain capacity well after cycling.

  Weaknesses

  Commercial supply timing is relatively late, and the company still needs to solve silicon expansion and cost issues.

  Comparison

  Compared with traditional graphite anodes, silicon anodes offer greater energy-density gains; compared with China’s materials chain, Korean suppliers place more emphasis on high-end EV and solid-state applications.

  Risks

  Mass-production yield, customer validation, technology substitution, and EV demand volatility.

• LG Energy Solution

  A participant in next-generation battery patents and battery-swapping applications

  Strengths

  Has strengthened its patent portfolio in LMR and silicon anodes and is piloting electric two-wheeler battery swapping in Vietnam with Honda.

  Weaknesses

  LMR commercial mass production and the Vietnam pilot remain at an early stage.

  Comparison

  Compared with the LFP route, LMR aims to provide an alternative balance between cost and energy density.

  Risks

  Weaker-than-expected patent commercialization, changes in GM project pace, and unclear economics for two-wheeler battery swapping.

• GoodWe

  A participant in the Australian residential energy storage market

  Strengths

  Achieved three No. 1 rankings in SunWiz’s April 2026 data and benefits from Australian household battery subsidies and residential storage demand growth.

  Weaknesses

  Business performance is sensitive to Australian policy subsidies, channels, and local installation demand.

  Comparison

  Compared with large-scale storage suppliers, GoodWe benefits more directly from the residential 0-30kWh market.

  Risks

  Subsidy tapering, intensifying competition, installation bottlenecks, and after-sales pressure.

Key data

• Ford Kentucky plant technology routeShift from pouch-format NCM to square-format LFP batteries using CATL technologyThe former BlueOvalSK Kentucky plant, after the JV split, is controlled by Ford and primarily serves Ford Energy’s ESS market; orders to Korean equipment suppliers have been canceled or equipment has been left idle.
• SK On Tennessee plant uncertaintyProduction delayed until 2028Future utilization depends on new EV, HEV, or ESS orders.
• Stellantis transformation planUSD 60 billion; 29 EVs, 15 PHEVs or EREVs; rollout before 2030The STLA One EV version adopts an 800V architecture, LFP batteries, and cell-to-body design, and also strengthens cooperation with Qualcomm and Wayve.
• Putailai separator capacity expansionCNY 5.6 billion / USD 823.3 million; adds 7.2 billion square meters of annual capacityThe Sichuan Qionglai project adds 16 production lines, with Phase I planned for trial production in 2027 and Phase II expected to start in 1Q 2028.
• Ganfeng solid-state battery progressSmall-batch production of 10Ah lithium-metal solid-state batteries with an energy density of 500Wh/kgThe 400Wh/kg solid-state battery has already exceeded 1,100 cycles and completed engineering validation.
• SVOLT semi-solid-state batteryMass production planned for September 2026; first generation about 300Wh/kg, second generation target 360Wh/kgThe company believes semi-solid-state may become the main near-term technology path, while fully solid-state remains far from commercialization.
• Sungrow Middle East energy storage order7.5GWh PowerTitan 3.0 energy storage system; 2.6GW photovoltaic invertersSupplies Masdar’s UAE RTC project; the project totals 5.2GW of solar and 19GWh of battery storage and is expected to operate in 2027.
• Xiaomi EV supply chainA new subsidiary covers batteries, motors, and electric controls; another rumor says new-brand battery suppliers include Sunwoda and CALBSkynomad’s first model, Kunlun N3, is expected to launch in 2H 2026, with a battery pack above 70kWh and a pure-electric range of 400-500km.
• POSCO Future M silicon anodeTargeting commercial production and supply in 2028Batteries with more than 20% silicon content retain over 80% capacity after 1,000 cycles.
• L&F LFP cathode capacityDaegu plant 30,000 tons annual capacity, planned mass production in 3Q 2026; expanded to 60,000 tons in 1H 2027Targets ESS, AI data centers, the grid, and mass-market EVs, while also advancing in-house production of iron phosphate precursors.
• Gotion Spain projectReceived €92 million in subsidies; total investment expected at €944.3 millionThe project includes cathode material production and a battery recycling plant, supporting Europe’s materials and recycling footprint.
• Renewable Metals financingAUD 12 million Series AThe Kewdale pilot recycling plant is expected to come online in mid-2026 and can process up to 2,000 tons of batteries per year, equivalent to about 4,000 EV batteries.
• GoodWe Australian residential storage rankingThree No. 1 rankings in SunWiz April 2026 dataIncluding the fastest-growing ESS manufacturer in 2026, No. 1 market share in certain states, and No. 1 overall share in the 0-30kWh residential storage segment.

Impact & implications

In terms of investment implications, ESS demand and the LFP cost route continue to support structural growth across the global battery chain, but returns are diverging by segment. Chinese battery and materials companies continue to show strength in LFP, separators, solid-state/semi-solid-state, and system integration; Korean companies face pressure from slowing U.S. EV demand, Ford’s supply-chain switch, and substitution by Chinese technology, while also trying to pivot into LFP, LMR, silicon anodes, and ESS components. Regionally, large-scale storage in the Middle East, residential storage in Australia, materials and recycling in Europe, battery swapping for two-wheelers in Vietnam, and power-supply scenarios for AI data centers provide incremental demand.

Risks

• Slowing EV demand in the United States may affect utilization rates at Korean battery and materials manufacturers.
• Ford’s supply-chain shift shows pressure from Chinese LFP technology substituting Korean equipment and the NCM route.
• Solid-state and semi-solid-state battery commercialization still faces risks around yield, cost, safety validation, and customer adoption.
• Capacity expansion in separators, LFP cathodes, and battery recycling may lead to overcapacity and price competition.
• Large ESS projects face risks of delivery delays, system safety, operation in extreme environments, and project financing.
• Geopolitics, tariffs, and localization policies may affect overseas expansion by Chinese battery companies.

What to watch

• Equipment supplier replacement and mass-production timing after Ford Kentucky shifts to LFP ESS.
• The rollout pace of Stellantis’s STLA One platform, LFP batteries, and cell-to-body solution.
• Mass-production yield, customer adoption, and cost curves for Ganfeng’s 500Wh/kg solid-state battery and SVOLT’s semi-solid-state battery.
• Progress on Sungrow’s Masdar UAE RTC project and follow-on large storage orders in the Middle East.
• Whether materials expansion projects such as Putailai, L&F, and POSCO Future M start production according to their 2026-2028 plans.
• The persistence of Australian residential storage subsidies and their effect on orders and market share for companies such as GoodWe.
• Whether battery recycling projects in Europe and Australia can achieve commercial scale and cost advantages.