Seven battery-sector stocks are attracting attention. Demand for data-center BBUs, grid-scale batteries, UPS systems and PCS is expected to grow as AI adoption and renewable energy expand.
Against a backdrop of rising power demand from AI data centers and the expansion of renewable energy, the battery market is seeing rapidly growing demand for stationary and industrial systems. The first growth driver is the sharp increase in domestic grid-scale batteries, underpinned by the policy of raising the renewable energy ratio in the fiscal year ending March 2041 and a significant increase in grid-connected capacity. The second growth driver is demand for backup power and power control at AI data centers, with growth across a four-layer structure comprising BBUs, UPS systems, customer-side batteries and grid-scale batteries.
An analysis of related stocks explains the key roles played by 7 companies, including Panasonic Holdings, GS Yuasa Corporation, Fuji Electric, Daihen, Meidensha, Sumitomo Electric Industries and Renova, as well as their respective growth prospects. Panasonic Holdings has set out a plan to significantly increase sales of BBUs for data centers, while GS Yuasa is expected to benefit from the combination of domestically produced cells and UPS systems. Fuji Electric is expanding its large-capacity UPS and grid-scale energy storage systems businesses, while Daihen is securing the core of the market through packaged supplies that include PCS and transformers. Sumitomo Electric Industries is focusing on redox flow batteries, and Renova on the development and operation of battery storage facilities, with both companies expecting growth in their respective areas of strength.
Overall, the battery market is continuing to expand, driven by renewable energy grid stabilization and growing demand from AI data centers, and attention is increasing across a broad range of the value chain.