EcoFlow Weighs U.S. IPO Amid Tightening Scrut...

EcoFlow, a Chinese maker of portable energy storage products, has begun preparations for a potential initial public offering in the United States that could raise at least $300 million, in a test of investor appetite for Chinese companies amid tightening U.S. regulatory scrutiny and intensifying geopolitical frictions.

Bloomberg reported earlier on Tuesday that EcoFlow, formally known as Shenzhen EcoFlow Technology Co Ltd, is working with advisers on a possible U.S. listing and that Sequoia China, one of its core investors, is involved in underwriting discussions. EcoFlow did not immediately respond to a Reuters request for comment.

If completed, the offering would come at a delicate moment for Chinese issuers. Nasdaq has raised minimum fundraising thresholds for China-linked companies, while U.S. regulators have increased disclosure and audit requirements. At the same time, the U.S. Inflation Reduction Act (IRA) has made North America the world’s fastest-growing energy storage market, drawing both domestic and foreign manufacturers with generous subsidies tied to local production.

EcoFlow’s deliberations underscore the strategic trade-offs facing Chinese clean energy leaders: how to secure capital and market access in the United States while navigating rising compliance costs, supply chain realignment and political risk.

Founded in 2017 by engineer Wang Lei, EcoFlow has grown rapidly to become one of the world’s largest suppliers of portable power stations used for outdoor recreation, home backup and light commercial applications.

According to industry data, EcoFlow held a 25.8% share of global portable energy storage sales by revenue in 2024, ahead of rivals such as Jackery, Anker Innovations and Goal Zero. Chinese brands collectively account for more than 60% of the global market, reflecting China’s dominance in battery manufacturing and power electronics.

EcoFlow’s rise coincided with surging demand for decentralized power solutions, driven by extreme weather events, outdoor leisure trends and growing adoption of rooftop solar systems. Its products are sold in more than 100 countries, with North America accounting for roughly 40% of revenue, according to people familiar with the company’s operations.

The company differentiated itself early through fast-charging technology that significantly reduced charging times compared with traditional portable generators. Its flagship DELTA series can recharge in under two hours using standard AC outlets, a feature that helped it gain traction in the U.S. consumer market despite premium pricing.

People familiar with EcoFlow’s planning said the company is considering raising at least $300 million, with proceeds earmarked for overseas manufacturing, research and development, and market expansion in North America.

A key driver is the IRA, which offers tax credits of up to 30% for domestically produced energy storage equipment and additional manufacturing incentives for battery components made in the United States. Energy storage products assembled abroad but sold into the U.S. face tariffs and are ineligible for many subsidies.

EcoFlow is evaluating plans to build its first overseas manufacturing facility in the southeastern United States, the sources said, potentially allowing it to qualify for IRA incentives and reduce exposure to trade barriers.

“The U.S. market is becoming increasingly localized,” said one industry analyst based in Shanghai. “For companies like EcoFlow, listing in the U.S. and investing locally are increasingly linked strategic decisions.”

Valuation is another factor. U.S.-listed energy storage and solar companies typically trade at higher multiples than peers in China’s A-share market. Enphase Energy, a U.S.-based solar and storage firm, trades at around 20 times forward earnings, compared with lower multiples for comparable Chinese manufacturers listed domestically.

EcoFlow’s revenue is projected by analysts to reach around 7 billion yuan ($980 million) in 2024, with double-digit growth expected in 2025. A U.S. listing could significantly exceed the company’s last private valuation, estimated at about $1 billion in 2023, the sources said.

Despite these attractions, the path to a U.S. IPO has become more challenging for Chinese companies.

Nasdaq in 2025 raised the minimum capital-raising threshold for Chinese issuers to $25 million and tightened requirements related to market capitalization and public float. At least 11 China-linked companies have had trading suspended this year for failing to meet listing standards, according to exchange data.

The U.S. Securities and Exchange Commission (SEC) has also stepped up scrutiny of disclosures by Chinese companies, particularly around revenue recognition, supply chain dependencies and government policy exposure.

Audit oversight remains a persistent concern. While U.S. and Chinese regulators reached a framework agreement in 2022 to allow inspection of audit work papers, U.S. regulators have warned that compliance remains uneven. The Public Company Accounting Oversight Board (PCAOB) said in 2025 that it identified deficiencies in more than one-third of inspected audit engagements involving China-based issuers.

Any breakdown in audit cooperation could revive delisting risks under the Holding Foreign Companies Accountable Act, analysts said.

EcoFlow also faces mounting competition at home and abroad.

In China, rivals such as Jackery have gained share by offering lower-priced products and expanding offline retail channels. Anker Innovations has leveraged its strong presence on Amazon to bundle portable power products with accessories, increasing average order values.

In the United States, competition is even more intense. Generac, a leading U.S. home generator manufacturer, has expanded aggressively into battery storage, using its established dealer network. Enphase and Tesla-backed solutions have strengthened their positions in residential solar-plus-storage systems.

At the same time, falling battery costs and industry overcapacity have triggered price competition. Average selling prices for portable energy storage products fell by more than 10% globally in 2024, according to industry estimates, squeezing margins.

EcoFlow has cut prices on some U.S. models to defend market share, which reduced gross margins, people familiar with the company said.

Perhaps the most complex challenge lies in supply chain restructuring.

The IRA’s “foreign entity of concern” provisions restrict subsidies for products using battery materials sourced from certain countries. China currently dominates global lithium processing and battery cell manufacturing, and EcoFlow relies heavily on Chinese suppliers.

Shifting sourcing to North America or U.S.-allied countries could raise costs significantly, analysts said, as labor, raw materials and compliance expenses are higher. Building parallel supply chains for different regions also increases operational complexity and inventory risk.

“Localizing manufacturing is not just about building a factory,” said a U.S.-based energy storage consultant. “It means rebuilding supplier relationships, quality control systems and workforce capabilities.”

EcoFlow’s deliberations reflect a broader trend among Chinese energy storage companies seeking overseas listings and localized operations.

In the past two years, multiple Chinese battery and storage firms have explored listings in the United States, Hong Kong or Europe as domestic competition intensifies and growth shifts overseas.

Industry executives say the era of exporting finished products alone is ending. To remain competitive, Chinese firms must localize manufacturing, R&D and talent while retaining technological advantages developed at home.

For EcoFlow, a successful U.S. IPO would mark a transition from a fast-growing Chinese startup to a global industrial player. Failure or delay, however, would highlight the constraints facing Chinese companies amid geopolitical uncertainty.

“The window is narrowing,” said one banker familiar with the deal. “The opportunity is real, but so are the risks.”

Whether EcoFlow proceeds with a U.S. listing remains uncertain. But its decision will be closely watched as a barometer of how far Chinese clean energy firms can go in global capital markets in an increasingly fragmented world.