The main focus of Taiwan's energy storage industry is the supply of lithium-ion battery energy storage systems, which attracts manufacturers to invest in the following four key aspects: (1) lithium battery materials, (2) lithium battery manufacturing, (3) production of main subsystems (including battery modules, power conversion systems, and energy management & control systems) at the midstream of the supply chain, and (4) integration of downstream energy storage systems.

　　In the field of lithium battery materials, there are companies investing in lithium iron phosphate batteries, ternary cathode materials for batteries, carbon-based anode technology and other important components (including electrolyte, separator and copper foils, aluminum foils, and other battery-related packaging materials), which forms Taiwan's independent supply chain for lithium battery materials. Many Taiwanese companies have the capacity in lithium battery module assembly and storage battery management subsystem design, such companies are also major suppliers of battery modules for international consumer electronic products. In recent years, these manufacturers have begun the production and supply of battery cells and battery modules for energy storage applications, which is expanding the diversified application markets and encourage exports.

　　The development and deployment of energy storage power conversion systems are based upon previous experience of the development of the solar photovoltaic industry; the downstream energy storage systems integration focuses on further integration of the battery subsystems, power conversion systems, and energy management & control subsystems to form the terminal products for power system application. There are Taiwanese manufacturers currently investing in each of the aspects of the energy storage industry, and some of them are implementing the vertical integration of the supply chain. Therefore, Taiwanese companies are able to provide resources and connections for technological, production, or marketing collaboration up and down the industry chain, which is the advantage of competing in the international markets.