China’s Ganfeng Secures Orders Amid Surge in Demand for Global Energy Storage, AI Boom

Why It Matters

The booked‑through‑2027 backlog guarantees near‑term revenue stability for Ganfeng and underscores the pivotal role of lithium in the expanding ESS and AI‑driven data‑centre markets. This positions the firm as a key supplier in the global transition to renewable‑based power grids and high‑performance computing.

Key Takeaways

• Ganfeng's production fully booked through H1 2027
• ESS shipments jumped 350% to 550 GWh in 2023
• Lithium‑ion battery revenue now 35.7% of Ganfeng’s total
• Net profit swung to $270 million in Q1 after prior loss
• AI data centres expected to boost future lithium demand

Pulse Analysis

The rapid escalation of energy‑storage systems reflects utilities’ need to buffer intermittent renewable generation and to support power‑hungry AI data centres. Ganfeng’s order backlog, now extending to mid‑2027, signals that manufacturers worldwide are scrambling for lithium‑ion cells capable of stabilising grids and providing backup for AI workloads. This demand surge has propelled global ESS shipments from 121 GWh in 2022 to 550 GWh last year, a growth curve that outpaces even the electric‑vehicle market.

Beyond storage, AI data centres are emerging as a new lithium catalyst. As hyperscale cloud providers expand compute capacity, they consume massive amounts of power, prompting operators to pair servers with on‑site battery systems for reliability and cost efficiency. Ganfeng’s executives anticipate that AI‑driven demand will become a “significant growth” vector, complementing traditional EV and consumer‑electronics markets. The convergence of AI and renewable integration is reshaping supply chains, pushing lithium producers to secure long‑term contracts and invest in higher‑purity, faster‑charging chemistries.

However, Ganfeng’s optimism faces stiff competition from domestic giants CATL and BYD, which are accelerating their own ESS portfolios. To stay ahead, Ganfeng is betting on accelerated R&D to lower battery costs and improve performance, leveraging its diversified lithium‑compound product line. The company’s strategic focus on cost reduction, coupled with a 50% capacity expansion slated for next year, aims to capture a larger slice of the burgeoning ESS and AI‑data‑centre market while navigating a crowded, fast‑evolving landscape.