I just recently realized that the energy storage track is truly not something to be underestimated. As electric vehicle penetration continues to rise, along with the continuous decline in green energy costs, countries around the world are rushing to stake out positions for the energy transition—and energy storage systems have already become a key part of this energy revolution.

Put simply, wind and solar are environmentally friendly, but their output is unstable. When nobody is using electricity in the early morning, electricity prices can even turn negative to attract consumption—this is when energy storage facilities are needed to balance the grid. That’s also why governments across the world are pouring money into it, and this trend is unlikely to change in the short term.

I’ve recently been looking at concept stocks related to electric vehicle energy storage, and I found that this industry chain is actually quite long. Battery manufacturers such as Xinsongli and Changyuan Technology—Taiwanese companies—may not have technology as cutting-edge as Tesla or Enphase, but they have advantages in niche applications and assembly. In the system integration segment, Delta Electronics is very strong, offering end-to-end solutions from power conversion to energy management software. Zhongxing Electric is also quite good, with a not-low share in Taipower’s frequency regulation market.

What’s interesting is that traditional power equipment manufacturers are also being pulled along. As a transformer leader, Huacheng directly benefits from Taipower’s grid resilience program and the U.S. shortage wave. A-Li’s distribution panels and inverters can be seen everywhere. These companies may look traditional, but in the energy storage wave, they are actually the beneficiaries.

On the upstream raw materials side, suppliers such as Formosa Plastics, Compu, and Meiqima are also worth paying attention to for cathode material supply. Of course, if you don’t want to pick individual stocks, there are plenty of options in the U.S. market as well. Fluence Energy, a global leader in energy storage integration formed as a joint venture between Siemens and AES, is one example. NextEra Energy has a large portfolio of wind and solar projects with added energy storage.

According to BloombergNEF’s forecast, by 2030, global cumulative energy storage installations will surpass the one-terawatt-hour mark, with most supplied by lithium-ion batteries. This means that the long-term demand for electric vehicle energy storage concept stocks should be steadily upward. However, keep in mind that there are many new companies in this field, and their technical strength varies widely. Some companies may not be able to reach break-even over the long term, and their stock prices could face enormous pressure—so stock selection still needs to focus on fundamentals and manage risk.

My view is that, as AI applications may significantly increase electricity demand, and with countries continuing to promote supportive policies, the investment value of electric vehicle energy storage concept stocks is indeed quite good. Every time a new policy is introduced, the market may hype up a round, but the key is still to find companies with strong technology and real revenue. There may be opportunities in the short term, but in the long run, it depends on whether companies can truly turn R&D into market competitiveness.