China and Spain Forge Strategic Energy Storage Alliance as US Escalates Tariff Tensions

On April 15 (local time), a fact sheet published on the White House website regarding Section 232 mentioned that "China now faces tariffs of up to 245% on products imported into the United States."

 

In reality, this is not a new policy but refers to the maximum combined rate under the current multi-layered tariff mechanism applied to certain Chinese goods.

 

While the US employs "tariff extortion" globally, China and Europe are accelerating trade cooperation. During Spanish Prime Minister Pedro Sánchez's recent visit to China, he met with numerous Chinese entrepreneurs, signaling opportunities for cooperation in the energy storage sector.

 

Spain's Energy Storage Strategy

 

Regarding Sánchez's visit to China, Chinese Foreign Ministry spokesperson Lin Jian stated at a regular press briefing that this was the Prime Minister's **third visit to China in three years** and that the visit was **highly successful**.

 

As one of Europe's energy transition pioneers, Spain has invested substantial resources in energy storage in recent years. According to a subsidy plan approved by the EU, Spain will invest nearly €700 million in energy storage subsidies, with individual projects eligible for up to 85% capital subsidies.

 

Spain aims to add 2.5-3.5GW of new energy storage capacity by 2029, covering 80-120 key engineering projects. This not only injects powerful momentum into Spain's energy storage market but also provides enormous market opportunities for global energy storage enterprises.

 

From a technological perspective, Spain's energy storage market encompasses multiple technologies, including lithium-ion batteries, flow batteries, and compressed air energy storage. Among these, lithium-ion battery storage systems have become the mainstream choice in Spain's market due to their efficiency and flexibility.

 

Data shows that in 2024, Spain's total installed energy storage capacity reached 3.356GW, with annual dispatched electricity reaching 8,666GWh. Energy storage systems were officially included in the national grid's statistical system for the first time.

 

Against the backdrop of this rapidly developing market, China-EU cooperation has become an important force driving technological progress and market expansion in energy storage. The Spanish Prime Minister's meeting with Chinese energy storage companies exemplifies this cooperation. Chinese enterprises possess significant advantages in technology, cost, and supply chain integration, while Spain offers unique advantages in policy support, market demand, and geographical location, allowing both sides to complement each other's strengths.

 

How Chinese Companies Are Capitalizing

 

Notably, the six Chinese energy storage companies in this meeting—CATL, Envision Technology, Shanghai Chery Energy, Pylon Technologies, Energy China, and GCL Group—all possess deep technical expertise and market experience in different energy storage segments.

 

As a global leader in lithium-ion battery manufacturing, CATL has established important production bases in Spain. In December 2024, CATL announced a joint venture with Stellantis in Spain, its third major battery production base in Europe.

 

source：CATL

Additionally, CATL's technological innovations in energy storage provide strong support for Spain's energy transition. For example, its energy storage battery systems feature high energy density, long cycle life, and high safety, effectively addressing the intermittency and instability issues of renewable energy.

 

Envision Technology is deepening its cooperation with Spain by investing in a lithium iron phosphate battery gigafactory. The factory is expected to begin production in 2026 and will be built in continental Europe's first zero-carbon industrial park, creating zero-carbon battery products.

 

Envision has also signed a hydrogen energy cooperation agreement with Spain to develop hydrogen equipment factories and green hydrogen industrial chains, supporting Spain and Europe's carbon neutrality transition and green industrial system construction. Envision's strategic positioning demonstrates not only its technological advantages in energy storage and hydrogen energy but also its active role in promoting global energy transition.

 

Shanghai Chery Energy is expanding its influence in the European market by establishing a smart energy storage equipment manufacturing base and energy trading platform in Malaga, Spain. The base has a planned annual production capacity of 5GWh and is expected to be officially operational in 2026. Chery Energy's development will help increase Spain's energy storage capacity and promote the alignment of Chinese standards with EU standards, contributing Chinese expertise to the EU's carbon neutrality goals.

 

Pylon Technologies has included Spain in its strategic focus areas. As the only company among global lithium-ion energy storage battery suppliers with GWh-level shipments that focuses exclusively on the energy storage sector, Pylon highly values Spain's role as a "bridgehead" connecting European, North African, and Latin American markets.

 

Energy China and GCL Group are also actively developing in Spain's energy storage market. Energy China entered the Spanish market through the acquisition of Spanish design company EAG and collaborates with local Spanish enterprises in third-party markets in Latin America, the Middle East, and North Africa.

 

GCL Group has established an "end-to-end" strategic cooperation model with the Spanish government and local enterprises, promoting deep integration of production capacity planning and market demand, and achieving organic integration of supply chain localization and globalization.

 

Future Outlook

 

Looking ahead, Spain's energy storage market will continue to maintain rapid growth. As renewable energy further develops, the importance of energy storage technology will become increasingly prominent. The Spanish government's subsidy policies and market demand will provide broad market space for global energy storage enterprises.

 

In this energy storage competition spanning the Eurasian continent, the Spanish market acts as a prism, reflecting both the technological strength and business acumen of Chinese companies while exposing the challenges and risks of global expansion.

 

The Manila Galleon trade of 16th century Spain was an important link in the early modern global trade network, connecting Asia, the Americas, and Europe to form a trans-Pacific "silk-silver circulation" system. Today, cooperation in the energy storage sector holds the promise of reviving the maritime spirit of Manila's historic sailing routes.