Recently studying the major trend of energy transition, I found that energy storage has indeed become an unavoidable investment theme. As the global net-zero carbon emissions goal becomes more urgent, coupled with the widespread adoption of electric vehicles and large-scale deployment of renewable energy, the investment value of energy storage concept stocks is beginning to emerge.

Let's first talk about what energy storage is. Simply put, energy storage technology is about storing electrical energy and releasing it when needed. This technology has a wide range of applications—from power systems to new energy sources and transportation. Energy storage concept stocks refer to listed companies that develop energy storage facilities and solutions.

I divide this industry chain into several parts. First are battery manufacturers, which are core. In the U.S. stock market, Tesla's Megapack and Powerwall are globally leading, Enphase Energy has a high penetration rate in residential storage, and QuantumScape is betting on solid-state batteries as the next-generation technology. In Taiwan stocks, New Strong Power and Chang Yuan Technology also have significant layouts in lithium batteries.

Next are system integrators. These companies not only provide batteries but also integrate inverters, battery management systems, energy management software, ultimately delivering complete energy storage solutions. In the U.S., Fluence Energy, a joint venture between Siemens and AES, is a global leader, while Stem relies on its AI software platform Athena to automatically optimize charge and discharge timing. In Taiwan stocks, Delta Electronics is the strongest integrator, offering a one-stop solution from power conversion to energy management.

Then there are power equipment and renewable energy integration companies. For energy storage to be effective, it must connect to the power grid, so traditional power equipment manufacturers are also very important. NextEra Energy is the world's largest renewable energy operator, and Eaton is a leader in power management. In Taiwan stocks, companies like Hua Cheng, A-Li, and Shih Electric have strengths in transformers, distribution panels, and inverters.

Finally, the supply chain for materials and components. Raw materials like lithium, nickel, and cobalt are vital for batteries. Albemarle is the world's largest lithium producer, and the copper demand from Freeport-McMoRan is also highly tied to energy transition. In Taiwan stocks, Formosa Plastics, Sanyang, Kony, and Meki-Ma are involved in cathode materials and electrolytes with notable activity.

Why are energy storage concept stocks favored now? According to BloombergNEF's forecast, by 2030, the cumulative global energy storage capacity will surpass one terawatt-hour, mostly supplied by lithium-ion batteries. In the UK, wind power contributed 32.4% of electricity in the first half of this year, but wind output is unstable, and negative electricity prices even appeared overnight. This is why energy storage facilities are becoming indispensable—they balance grid fluctuations and are key to the widespread application of new energy sources.

Plus, the proliferation of electric vehicles and the potential significant increase in electricity demand from AI could lead to long-term growth in renewable energy and energy storage system needs. These investments are mainly government-led, so the outlook for energy storage concept stocks is relatively stable, with high transparency and predictability.

However, investing in energy storage concept stocks still requires caution. Many new companies have weak fundamentals; if they cannot achieve long-term profitability, their stock prices will face huge pressure. Stock selection should focus on fundamentals—whether the technology can truly commercialize and generate profits is critical. While policy announcements can trigger speculation, it’s important to seize opportunities while managing risks. Overall, clean energy cannot do without energy storage technology, and the long-term logic of this sector is sound. But stock picking and risk control discipline ultimately determine whether profits can be achieved.