I’ve been keeping an eye on the energy storage sector lately, and I truly feel it’s a long-term theme worth paying attention to. As the global pressure to achieve net-zero carbon emissions continues to grow, along with the widespread adoption of electric vehicles and the large-scale deployment of wind power and solar power, energy storage systems have become a key part of the energy transition.

I mapped out the industry chain and found that investing in energy storage concept stocks can be approached from four directions. First is battery manufacturing. Companies like Tesla’s Megapack and Powerwall hold an important position in the global energy storage market. On the U.S. stock side, there are also firms such as Enphase Energy and QuantumScape, which focus on next-generation solid-state batteries. In Taiwan, Xinshengli and Changyuan Ke specialize in lithium batteries and lithium iron phosphate.

Next are system integrators. These companies not only provide batteries, but also integrate inverters, battery management systems, and energy management software into a complete solution. On the U.S. market, Fluence Energy is a global leader in grid-scale energy storage. In Taiwan, Delta Electronics is the strongest—providing everything from power conversion systems to software in one stop. ZTE Electric and SenWai Energy also each have their own strengths. ZTE Electric has a high share in Taipower’s frequency regulation auxiliary services market, while SenWai Energy takes a “green energy one-stop service” approach.

Third is the integration of power equipment and renewable energy, which involves infrastructure such as transformers and switchgear. In the U.S., NextEra Energy is the world’s largest renewable energy operator, and Vistra Corp is even more noteworthy—transforming old coal-fired power plants into the largest energy storage base in the United States. In Taiwan, Huacheng is a leading transformer company, and A-Li’s switchgear and inverters are also very strong.

Finally is the materials and components supply chain, which sits at the upstream end of the entire industry. In the U.S., Albemarle controls the world’s largest lithium mine, and Freeport-McMoRan’s copper demand is highly tied to the energy transition. In Taiwan, Formosa Plastics invests in electrolytes through subsidiaries; Suncore has a layout in graphene materials; and KMP and Megachem are important suppliers of nickel sulfate and cobalt sulfate.

To be honest, the development of U.S. energy storage concept stocks is more mature, and the industry chain is more complete. According to BloombergNEF’s forecast, by 2030 the world’s cumulative energy storage capacity will break through the terawatt-hour threshold, which means there is still substantial growth potential over the next decade. Combined with government-led investment in various countries, the outlook for energy storage concept stocks is relatively stable, with higher transparency and predictability.

However, there is one risk to keep in mind: many new companies lack sufficient technological competitiveness, and in the long run they may be unable to reach break-even. In that case, their stock prices may come under significant pressure. So when picking stocks, it’s still important to look at fundamentals, regularly review your holdings, and manage risk well. My own view is that with the adoption of electric vehicles, the expansion of wind and solar power, and the explosive growth in AI electricity demand—these three factors combined—the demand for energy storage systems should continue to grow over the long term, making it worth following for the long run.