Electrical Equipment / Components & Telecoms

According to Huacheng's import and export data observation report, recently, Ningde Times announced that it would exclusively supply batteries for the Gemini photovoltaic energy storage project in the United States. With the rapid development of global "optical storage integration", energy storage battery business has gradually become the second largest growth curve of power battery enterprises. Due to the limited capacity, there is a shortage of energy storage batteries. Many power battery enterprises have recently stepped up production expansion to meet the rapidly growing market demand.

Strong demand

Ningde Times recently announced that it has reached an agreement with Primergy Solar LLC (hereinafter referred to as "Primergy"), an American utility and distributed photovoltaic energy storage development operator, to exclusively supply batteries for Gemini photovoltaic energy storage project. Ningde Times will provide Primergy with outdoor liquid cooled energy storage cabinet EnerOne. This product uses lithium iron phosphate battery cell with high thermal stability, and its cycle life can reach 10000 times to ensure the operation of Gemini project.

Recently, the demand for energy storage batteries has been released rapidly. According to the data of GGII, in the first half of 2022, the newly installed capacity of new energy storage will be 12.7GW, and only 3.4GW in 2021; The shipment volume of energy storage lithium battery is 44.5GWh, and the overall scale is close to the annual level in 2021. Huacheng's import and export data observation report.

In this context, power battery manufacturing enterprises continue to order. Ningde Times has previously announced that it has reached cooperation with FlexGen, a US energy storage technology platform and solution provider, and will supply 10GWh energy storage products to it within three years. Up to now, the cooperation between Ningde Times and FlexGen in the energy storage system project has exceeded 2.5GWh. Ningde Times also signed a strategic cooperation agreement with Sungrow Power in September this year to further deepen global cooperation in energy storage and other new energy fields.

In September, Nandu Power signed a 380 million yuan energy storage project with Pinggao Group International Engineering Co., Ltd. and Pinggao Group Energy Storage Technology Co., Ltd., which will promote the transformation of the local energy structure of the project. In June, Nandu Power also signed Huaneng Xinjiang 125MWh New Energy Distribution and Storage Project.

Driven by factors such as the continuous deepening of energy transformation and the emerging economy of energy storage projects, the energy storage market will step into a high landscape race track.

Accelerate production expansion

In September, 36 domestic new energy storage projects were opened, with a total capacity of 6.05GWh, a total power of 2.63GW, and an average bid winning unit price of 2.11 yuan/Wh; In the same period, 44 new energy storage projects were invited for bidding, with a total scale of 12.59GWh.

In the next five years, the global energy storage market will maintain a compound annual growth rate of more than 60%; In the second half of 2022, domestic energy storage projects will be implemented on a large scale, and the demand for overseas energy storage will grow rapidly. Huacheng Import and Export Data Observation Report.

In the face of the rapid growth of market demand, the supply of energy storage batteries began to appear in shortage. Keshida previously revealed in its investigation that the battery cells of energy storage batteries are relatively scarce materials. The company is actively contacting suppliers to respond to the current strong market demand and order increment by placing orders in advance and stocking more goods. Jinguan Shares once said on the investor interaction platform that some projects were slowly promoted due to the shortage of energy storage cells.

"All production lines of the company are in full production, with tight capacity." The relevant person in charge of a domestic power battery enterprise told China Securities News that "the demand for power batteries of new energy vehicles is strong, while the demand for energy storage batteries is rapidly released, and new production lines need time and a lot of capital investment."

According to the observation report on the import and export data of Huacheng, at present, many power battery enterprises have accelerated their production expansion to meet the market demand. On September 28, Ningde Times announced that it planned to invest in the construction of Luoyang New Energy Battery Production Base Project in Yibin District, Luoyang City, Henan Province, with a total investment of no more than 14 billion yuan. Ningde Times said that with the rapid development of the global new energy industry, the shipment of power batteries and energy storage batteries will enter the "TWh" era in the next few years. In order to seize the historical opportunity of the rapid development of the new energy industry and further improve the layout of the production base, the company plans to make corresponding capacity investment.

Ganfeng Lithium, a leading enterprise of lithium mines, actively laid out the field of power battery manufacturing. On September 28, Ganfeng Lithium announced that it had recently signed the Strategic Cooperation Framework Agreement with the People's Government of Yichun City to invest in the construction of a production and manufacturing base for new lithium batteries with an annual output of 30GWh, a project with an annual output of 7000 tons of lithium metal, and a project with an annual output of 50000 tons of lithium hydroxide in Fengcheng City.

Yiwei Lithium Energy continues to make efforts in the field of energy storage. On September 27, Yiwei Lithium Energy released an announcement that it planned to sign an investment agreement on energy storage and power battery projects with Shenyang Municipal People's Government and the Management Committee of Shenyang Economic and Technological Development Zone. The planned capacity of the project is 40GWh, and the total investment is expected to be 10 billion yuan. On May 17, Yiwei Lithium Energy announced that it planned to sign an agreement with Yuxi High tech Zone, Yunnan Province, on matters related to the investment and construction of lithium battery production projects. The project plans to invest 3 billion yuan to build a 10GWh power storage battery project.

With the increase of penetration rate of photovoltaic, wind power and other new energy power generation systems, the peak mismatch of power generation and grid instability have intensified, and the demand for electrochemical energy storage has accelerated. This will bring market opportunities to energy storage batteries, inverters, PCS and other links, Huacheng Import and Export Data Observation Report.