Subsidy Policy Launched, Demand for Domestic Battery Cells Expected to Rise
On August 18, the Ministry of Economic Affairs held a press conference to announce a subsidy of NT$5 million per MWh for energy storage systems using domestically manufactured lithium-based battery cells. The ministry stated that the policy aims to encourage industrial users, including those in industrial parks and science parks, to adopt energy storage systems to stabilize the power grid and stimulate demand for domestic battery cells.
The Bureau of Energy further explained that the subsidy will guide industrial users to deploy behind-the-meter energy storage, improving power quality through load regulation and gradually shifting energy consumption patterns from traditional grid dependence to energy storage reserves. This move will not only help reduce peak power demand but also create a stable market for the domestic battery cell industry.
Domestic Manufacturers Expand Production as Energy Storage Battery Capacity Grows
Under the policy’s impetus, domestic battery cell manufacturers have begun expanding production. Taiwan Cement Corporation’s subsidiary, E-One Moli Energy, produces high-performance ternary lithium battery cells under the Molicel brand at its factory in the Southern Taiwan Science Park. Its products are applied in energy storage and data center backup solutions. Giga Solar Materials has planned three factories in the Zhongli Industrial Park, manufacturing diverse products including pouch lithium battery cells, LTO lithium titanate, XNO niobium-based batteries, and ternary lithium batteries, targeting AI data center backup and industrial energy storage markets.
Other beneficiaries include companies like Enebest, indicating that the policy’s effects are gradually spreading across the supply chain. As the subsidy measures take effect, domestic battery cell production capacity is expected to increase further, strengthening Taiwan’s competitiveness in the global energy storage battery sector.
National Standards Established, Testing Capacity Significantly Enhanced
To ensure the safety of energy storage equipment, the Ministry of Economic Affairs has simultaneously promoted the establishment of standards and the enhancement of testing capacity. The Bureau of Standards, Metrology and Inspection has completed the harmonization and announcement of 24 national standards by the end of 2025, covering batteries, modules, and systems, providing comprehensive regulations for energy storage equipment. Additionally, the National Energy Storage System Testing Center will commence operations in 2026, equipped with a 360 kWh testing capacity to meet the safety testing needs of large-scale energy storage systems.
The Ministry of Economic Affairs emphasized that the newly established testing center is the only laboratory in Taiwan with combustion testing capabilities, effectively addressing previous gaps in domestic testing capacity. With localized testing services, costs are expected to be reduced by over 50%, while the time and expenses associated with overseas sample shipments will be significantly shortened. This will not only enhance the safety of energy storage equipment but also help domestic manufacturers obtain certifications more quickly, accelerating product time-to-market.
As policies and testing infrastructure continue to improve, Taiwan’s energy storage industry chain is expected to experience rapid development, further strengthening its competitive edge in the international market. The Ministry of Economic Affairs stated that it will continue to promote related measures to ensure synchronized progress in industrial development and grid stability.
