Energy Storage Batteries, Key to Renewables Transition

Energy storage batteries are critical to the viability of renewable sources, ensuring guaranteed, maximized supply with no wasted surplus. They provide a complementary or an alternative solution to energy harvested and converted to usable power for residential, commercial and industrial implementation. In the automotive industry, they drive the market for electric vehicles as a sustainable replacement of fossil fuel dependence.

China, still the global leader based on new generating capacity added in 2021 according to the World Economic Forum, has included battery storage in its 14^th Five-Year Plan. Bloomberg News reported that its goal is to reach 100GW capacity by 2030. Toward this end, the country will leverage its top spot in the supply chain for lithium batteries. According to the Ministry of Industry and Information Technology, China’s total Li-ion battery output for power storage hit 32GWh in 2021, a 146 percent YoY increase.

Energy storage batteries manufactured in China are widely used in solar and wind power systems, new-energy vehicles, power stations and 5G communications. Chinese companies continue to offer lead-acid and flow batteries as well, but lithium-based types represent more than half of shipments. This is because of lithium batteries’ advantages of high energy density, reliability and stability, in addition to a long operating life span.

LFP batteries take center stage

In the lithium category, LiFePO₄ batteries are considered the top choice for the energy storage field and are expected to be on the R&D agenda of Chinese battery suppliers in the next two years.

Xiamen Hithium, for instance, has announced the release of its 300Ah storage batteries, specially developed for power systems. These units have a maximum efficiency of 95 percent and can withstand up to 12,000 cycles. They are optimized for safety and have double explosion-resistant valves.

CALB, meanwhile, has recently realized breakthroughs in its “OS Hi-Mn LXFP Battery,” so called for its use of high manganese lithium iron material and its previously introduced one-stop minimalist ultrathin shell technology. This battery, with height decreased by 7 percent, has 180Wh/kg energy density, 80 percent energy density retention, zero nickel and cobalt consumption, and 15 percent lower lithium consumption. Its thermal electrical separation technology ensures a vehicle endurance range of up to 700km.

Investments coming in

There are new investments spurred by the high demand for energy storage sector. Lithium battery specialist EVE Energy has announced the construction of a factory in Qujin, Yunnan. The facility will have an annual production capacity of 14.3GWh energy storage batteries by late 2023.

EVE ranked third in China’s energy storage battery sector in 2021, accounting for 6 percent of the country’s total output, according to the Qianzhan Industry Research Institute. The leaders in this category are CATL and BYD, which respectively had shares of 28 and 20 percent in the same year.

The rest of China’s top 10 manufacturers are Gotion, Great Power, REPT, Pylontech, Narada, ZTT and Envision. Sunwoda, BUCCMA and Sungrow are among the other major players.

There are thousands of manufacturers in China, including foreign companies, with over 20 percent found in Guangdong, 15 percent in Jiangsu and the others in Anhui, Zhejiang, Hunan, Shandong and Fujian.

More than half of China’s total production of energy storage batteries is shipped overseas.

Growing energy storage battery market

Globally, the energy storage battery sector reached $7.54 billion in 2021, according to GGII, and was estimated to have more than doubled to $18.81 billion in 2022. It will be $51.07 billion by 2025, posting a CAGR of 39.5 percent from 2022.

With such an upbeat market, most Chinese suppliers are already predicting an annual increase in sales value exceeding 20 percent in the months ahead and 2024, according to companies interviewed by Global Sources.