CATL signs major US energy storage deal with a total project investment of nearly RMB 8.7 billion
Recently, CATL announced an agreement with Primergy Solar LLC, a US utility and distributed PV+storage development operator, to exclusively supply batteries for the Gemini PV+storage project. The Gemini project is located near Las Vegas, Nevada, with a total investment of $1.2 billion (approximately RMB 8.7 billion). 690 MWac/966 MWdc solar panels and a 1.416 GWh energy storage system are deployed at Gemini, which will be one of the largest PV storage projects in the US when completed.
CATL will provide Primergy with Ener One, a long-life, highly integrated and secure outdoor liquid-cooled energy storage cabinet with thermally stable lithium iron phosphate cells with a cycle life of 10,000 cycles.
On 22 September, the company announced a cooperation agreement with FlexGen, an American energy storage technology platform and solution provider, to supply 10GWh of energy storage products to the latter within three years.
According to Xinfang information data, CATL will have the first market share of global energy storage battery production in 2021. Last year, Ningde Times energy storage business contributed 15.457 billion yuan of revenue; and in the first half of this year, Ningde Times energy storage system achieved operating revenue of 12.736 billion yuan.
However, compared to power batteries, CATL’s energy storage products currently have a lower gross margin, with a gross margin of only 6.43% in the first half of this year. However, in the future, with the scale growth of the global energy storage market, Ningde Times is expected to achieve leapfrog growth in performance by virtue of its production capacity advantage.
