Caixin
Oct 19, 2021 07:04 PM
BUSINESS

Huawei Wins Contract for Saudi Energy Storage Project as It Expands Into New Businesses

 
 

What’s new: A unit of Huawei Technologies Co. Ltd. has won a contract to help build what it says is the world’s largest energy storage project in Saudi Arabia, the company announced Monday, as it seeks to expand beyond its core telecommunications gear business.

The project will be capable of storing 1,300 megawatt-hours of energy off the grid in Neom, the planned city on the Red Sea coast that Saudi Arabia aims to turn into a center for global clean energy and the green economy, Huawei said in a press release.

On Saturday, Huawei Digital Power Technologies Co. Ltd. jointly signed a contract for the project with another Chinese company, SEPCOIII Electric Power Construction Co. Ltd., during the 2021 Global Digital Power Summit held in Dubai.

Background: Huawei has been working to expand into new businesses since U.S. sanctions cut off its access to the key components it needs to make smartphones, leading to a plunge in the brand’s market share.

Founder and CEO Ren Zhengfei said in an interview in February that Huawei has established joint research labs focusing on mining, steelmaking, automaking and airplane manufacturing, with the aim of finding a way to apply its electronics and software computing systems to different industries.

A week ago, the tech giant announced four new business units for the logistics and energy industries: the Customs and Port Corps, Smart Highway Corps, Data Center Energy Corps and the Smart Photovoltaic Corps.

Quick Takes are condensed versions of China-related stories for fast news you can use.

Contact reporter Manyun Zou (manyunzou@caixin.com) and editor Michael Bellart (michaelbellart@caixin.com)

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