In the Yantai Economic and Technological Development Area, neighboring companies are partners and the industrial park functions as an ecosystem. [Photo/WeChat account: gh_5ec6eb206937]

The Yantai Economic and Technological Development Area is forging a 10-billion-yuan ($1.49 billion) energy storage industry cluster, with local companies forming a complete, self-contained supply chain.

The area has connected companies within a 10-kilometer radius, enabling them to collaborate on R&D, source components nearby, and directly connect supply with demand.

This setup has attracted 55 new energy storage enterprises, including 24 designated enterprises and 27 high-tech firms, with five listed companies in the energy storage sector.

At Yantai Leawat Power Technology's smart battery plant, automated production lines are running at full capacity, producing approximately 150 batteries per minute with phase-one capacity reaching 4 gigawatt-hours (GWh). The company's 46-series large cylindrical batteries serve electric vehicles, the low-altitude economy, and energy storage systems. After entering full production, annual capacity will hit 25 GWh with an estimated output value of 15 billion yuan.

The synergy within the 10-km radius goes beyond simple collaboration, creating a coordinated ecosystem in which each company contributes its unique strengths. Tayho Advanced Materials receives core materials from Wanhua Chemical and supplies separators to Ligoo New Energy's subsidiary, whose electronic control equipment is then sold to East Energy.

In 2025, the output of the area's new energy storage industry grew 50 percent year-on-year to 12 billion yuan. It aims to foster three to five industry-leading companies, attract over 150 chain enterprises, and generate 50 billion yuan in output by 2030.