China’s Energy Storage Companies Plug Into Growing Demand Overseas
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Sungrow Power signs a 4.4 GWh partnership agreement with Britain’s Fidra Energy on Nov. 18, 2024.
China’s energy storage companies are enjoying a power surge abroad. Since October they have signed overseas cooperation agreements for more than 50 gigawatt-hours (GWh), the equivalent of a quarter of China’s energy storage battery sales for the first nine months of the year.
These agreements, targeting key markets in Australia, Europe and the United States, reflect an escalating global demand for energy storage, driven by grid volatility in Europe and tax incentives in the U.S.
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- Chinese energy storage companies signed international agreements for over 50 GWh since October, driven by global demand particularly in Australia, Europe, and the U.S. due to factors like grid volatility and tax incentives.
- China's energy storage battery sales reached 191.5 GWh from January to October, with a 143% increase from the previous year, and exports nearly doubled.
- Challenges include rising trade barriers and dependency on non-binding agreements, though opportunities exist in high-demand markets due to volatile electricity pricing and mature energy policies.
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Who’s Who
- Sungrow Power
- Sungrow Power, an Anhui-based company, signed a 4.4 GWh partnership deal with Britain's Fidra Energy to construct Europe's largest energy storage stations, aiming to power 1.1 million households by 2025.
- REPT Battero Energy Co. Ltd.
- REPT Battero Energy Co. Ltd. signed a deal with South Korea's Jungwoo Chemical Co. Ltd. to deliver 7 GWh of energy storage products by next year. Additionally, the company will supply over 70% of the batteries for Australia's Waratah Super Battery Site, enabling a reliable energy supply as New South Wales closes its coal-fired power stations.
- Cornex
- Cornex, a Wuhan-based energy storage startup, has signed a solar park distribution and storage pilot project in Italy with Cestari Group and secured a 1.1 GWh deal with American YN Energy. The company is targeting niche opportunities in overseas markets, seeking to avoid direct competition with larger industry leaders.
- Sunwoda Energy
- Sunwoda Energy has partnered with Australia's Gryphon Energy in a 1.6 GWh project set for completion in 2026. This collaboration is part of a broader trend where Chinese energy storage companies are targeting high-demand markets, taking advantage of Australia's stable demand and well-developed electricity trading market.
- Hyperstrong
- Hyperstrong has partnered with Australia's Tesseract Energy and France's NW Group to deliver more than 2 GWh of energy storage products by 2026. This is part of China's response to global energy storage demand, focusing on key overseas markets.
- Contemporary Amperex Technology Co. Ltd. (CATL)
- Contemporary Amperex Technology Co. Ltd. (CATL) is the world's largest battery producer. In the first half of 2024, CATL's automotive battery revenue decreased nearly 20%, while revenue from energy storage systems grew by 3%, accounting for 17.3% of its total revenue. The company has shifted focus toward energy storage due to a slowdown in new energy vehicle sales and declining demand for car batteries in China.
- Jungwoo Chemical Co. Ltd.
- Jungwoo Chemical Co. Ltd. is a South Korean company that has signed an agreement with China's REPT Battero Energy Co. Ltd. to receive 7 GWh of energy storage products by next year.
- Fidra Energy
- Fidra Energy has partnered with Anhui-based Sungrow Power in a 4.4 GWh agreement to build Europe's largest energy storage stations, which aims to power 1.1 million households by 2025.
- Cestari Group
- Cestari Group is involved in a solar park distribution and storage pilot project in Italy with Wuhan-based energy storage startup Cornex.
- YN Energy
- YN Energy has partnered with Wuhan-based energy storage startup Cornex in a 1.1 GWh deal. This agreement is part of Cornex's broader international engagements, which include a solar park distribution and storage pilot project in Italy with Cestari Group.
- Gryphon Energy
- Gryphon Energy is an Australian company partnered with Sunwoda Energy in a 1.6 GWh energy storage project slated for 2026. This collaboration is part of China's energy storage companies' expansion into high-demand international markets, highlighting strategic efforts to engage in regions with mature energy policies and profitable business models.
- Tesseract Energy
- Tesseract Energy, an Australian company, has partnered with Chinese firm Hyperstrong for more than 2 GWh of energy storage products to be delivered by 2026. This collaboration is part of China's expanding international energy storage market, targeting high-demand regions like Australia due to volatile electricity prices and a strong need for energy storage solutions.
- NW Group
- NW Group is mentioned in the context of partnering with the Chinese company Hyperstrong for energy storage projects in France. The partnership aims to deliver more than 2 GWh of energy storage products by 2026. This forms part of an overseas expansion strategy by Chinese firms targeting high-demand markets such as Europe, where NW Group is presumably active in advancing renewable energy solutions.
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What Happened When
- 2023：
- Europe accounted for 22% of global new lithium battery storage projects, led by Germany, Italy, and the UK.
- Since 2023：
- Manufacturers repurpose idle production lines to produce energy storage batteries.
- The first half of 2024：
- CATL's automotive battery revenue dropped nearly 20%, while revenue from energy storage systems grew 3%.
- Between January and October 2024：
- China's energy storage battery sales reached 191.5 GWh.
- October 2024：
- Chinese energy storage companies signed overseas cooperation agreements for more than 50 gigawatt-hours.
AI generated, for reference only
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