Abstract: Thanks to the rapid decline in the cost of lithium-ion batteries driven by the mass production of power batteries for new energy vehicles, the market demand for energy storage batteries has begun to increase. In 2021, the growth rate of global energy storage battery shipments has basically reached the same level as the growth rate of power batteries.
In the context of the ongoing energy crisis, intensified energy shortages and high prices, and with the advancement of the dual carbon goals, the need to transform to renewable energy is becoming increasingly urgent. However, due to the lack of stability and balance of renewable energy, the market demand for energy storage batteries is accelerating.
The trillion-dollar energy storage market is surging
In recent years, energy storage policies have been intensively implemented in terms of top-level planning, demonstration projects, reward and subsidy rules, safe operation, etc., and policy mechanisms at the national and local levels have been continuously improved. Among them, the new energy storage policy that received the most attention was undoubtedly issued in March this year. On March 21, the "14th Five-Year Plan" New Energy Storage Development Implementation Plan jointly issued by the National Energy Administration proposed that by 2025, new energy storage will move from the early stage of commercialization to the stage of large-scale development, with large-scale commercial applications. Conditions; by 2030, new energy storage will be fully market-oriented.
Although the specific installation target is not specified in the New Energy Storage New Deal, the "Action Plan for Carbon Peaking Before 2030" issued by the State Council in October 2021 and the "About Accelerating Carbon Reduction" issued by the National Development and Reform Commission and the National Energy Administration in July 2021 The "Guiding Opinions on Promoting the Development of New Energy Storage" clearly states that the installed capacity of new energy storage will reach more than 30GW by 2025.
However, judging from the continuously upward forecast data of relevant research institutions, the installed capacity of new energy storage during the "14th Five-Year Plan" may far exceed the above planning targets.
In addition, on April 2, the National Energy Administration and the Ministry of Science and Technology released the "14th Five-Year Plan" for scientific and technological innovation in the energy field, proposing to lead the construction of new power systems with a gradually increasing proportion of new energy. Comprehensive breakthroughs in key technologies and equipment such as advanced renewable energy power generation and comprehensive utilization, new-generation power grids that are suitable for large-scale and high-proportion renewable energy-friendly grid integration, new large-capacity energy storage, hydrogen energy and fuel cells will promote the power system's optimal allocation of resources. Further improvements will be made to improve renewable energy supply security capabilities.
Under the encouragement and guidance of a series of policies such as promoting the deepening of institutional reform and innovation in the energy field, accelerating the construction of a clean, low-carbon, safe and efficient energy system, promoting high-quality energy development and comprehensive green transformation of economic and social development, "new energy + storage" in various regions "Energy" pilot demonstration projects are rapidly advancing. Just on April 7, the Shandong Provincial Energy Bureau issued an announcement about energy storage demonstration projects in 2022. 25 lithium battery energy storage projects are listed, with a total demonstration scale of 2568MW.
Against this background, energy storage is hailed as the next “trillion outlet”. Currently, there are about 170 energy storage concept stocks in Shanghai and Shenzhen stock exchanges. Since June 2021, energy storage concept stocks have continued to be popular in the market, and their cumulative gains have been significantly better than the gains of the CSI 300 in the same period in the long term.
Recently, research institutions EVTank, Ivey Economic Research Institute and China Battery Industry Research Institute jointly released "China Lithium-ion Battery Industry Development White Paper (2022)" . White paper data shows that in 2021, the overall global lithium-ion battery shipments will be 562.4GWh, a significant year-on-year increase of 91.0%. Among them, global automotive power battery (EV LIB) shipments were 371.0GWh, a year-on-year increase of 134.7%; energy storage battery (ESS LIB) shipments were 66.3GWh, a year-on-year increase of 132.6%.
It can be seen that thanks to the rapid decline in the cost of lithium-ion batteries driven by the mass production of power batteries for new energy vehicles, the market demand for energy storage batteries has begun to increase. In 2021, the growth rate of global energy storage battery shipments has basically reached the same level as the growth rate of power batteries.
html On April 2, data released by the Electronic Information Department of the Ministry of Industry and Information Technology showed that the country’s total lithium battery production exceeded 82GWh from January to February, of which the energy storage battery production exceeded 9GWh, and the installed capacity of new energy vehicle power batteries was approximately 30GWh.
As the proportion of renewable energy gradually increases, the rapid growth of photovoltaic and wind power installed capacity will drive the large-scale development of energy storage power stations. Wu Hui, general manager of the research department of Ivey Economic Research Institute/dean of China Battery Industry Research Institute, predicts , the cumulative installed capacity of global electrochemical energy storage power stations will reach 150GW in 2025, and will reach 550GW by 2030.
Huachuang Securities predicts that during the "14th Five-Year Plan" period, the average annual compound growth rate of global energy storage installed capacity will be more than 40%-50%, and the global energy storage market space is expected to reach 500-700 billion yuan by 2025.
Everbright Securities predicts that by 2025, my country’s energy storage investment market space will reach 0.45 trillion yuan; by 2030, it will grow to about 1.30 trillion yuan; from 2020 to 2060, the cumulative market space for energy storage investment will reach carbon neutrality. 122 trillion yuan.
Giants from all sides are pouring in
Public information shows that energy storage is mainly divided into three categories: mechanical energy storage, electrochemical energy storage, and photothermal energy storage. Among them, pumped hydro storage is currently the most mature energy storage technology with high energy conversion efficiency, accounting for more than 90% of the current energy storage market in China. In recent years, the development of new energy storage industry has continued to accelerate. New energy storage refers to new electrical energy storage technologies other than pumped hydro energy storage, including lithium batteries, compressed air, liquid flow, flywheels, sodium batteries, hydrogen storage, heat storage and other methods. Currently, among new energy storage systems, lithium-ion battery energy storage systems have dominated the commercial field, both globally and domestically.
According to Battery Network, the current participants in energy storage batteries are becoming increasingly diversified. Since this year, existing energy storage integrators, lithium battery companies, traditional energy giants and other parties have made frequent layout moves:
On April 6, BYD (002594) According to the latest investor relations activity record, the company has achieved large-scale and commercial applications around the world, from small-scale household energy storage of several kilowatts to grid energy storage solutions of hundreds of megawatts and even gigawatts. In addition, BYD launched a new generation of grid-level energy storage product platform BYDCube T28 last year, which increased the energy density per unit area by 90% compared to the previous generation of air-cooled container products, indicating that the era of GWh energy storage has arrived.
html On April 2, China Petroleum Bidding and Bidding Network showed that PetroChina issued three energy storage-related bidding documents in succession, namely, sodium-ion battery and energy storage device development and application project, lithium iron phosphate battery technology and battery testing system development project, Development of high-power electrochemical energy storage battery management system and energy management system.
html On April 2, Yanling County held a centralized signing ceremony for new energy projects. The Yanling County People's Government signed contracts with CRRC Zhuzhou Electric Locomotive Research Institute Co., Ltd. and China Water Conservancy and Hydropower 12th Engineering Bureau Co., Ltd. to introduce 100MW wind power projects and power grids. side energy storage project. Among them, the grid-side energy storage project has invested 800 million yuan. A total of 120 container-type battery cabins will be set up in the three towns of Langxi, Shuikou and Xiayang to achieve flexible adjustment and precise control of electric energy, greatly improving the regional power grid support capability.
html On the evening of March 30, Tianneng Co., Ltd. (688819) announced that it plans to use its wholly-owned subsidiary Zhejiang New Energy as the project implementation entity to add 583 acres of land in Changxing District, South Taihu Industrial Cluster, Huzhou, and invest in the construction of energy storage with an annual output of 15GWh. and power lithium battery projects, with an estimated total investment of approximately 5.17 billion yuan.
html On March 28, Shanghai Electric Guoxuan New Energy Technology Co., Ltd. and Pacific Green Technology, a US listed company, held an online signing ceremony for the British REP1&2 energy storage project, announcing the official launch of the project. It is reported that the UK REP1&2 energy storage project is located in Richborough Energy Park, Kent, UK. It is divided into two sites with a total capacity of 100MW/100MWH. Electric Guoxuan, as an energy storage integrator, provides a complete set of energy storage system solutions for the project.
html On the evening of March 25, Kelu Electronics (002121) announced that the company recently signed a battery energy storage system equipment supply contract with a customer in the Americas. The company will sell a total of 485MWh of container-type battery energy storage systems to the customer. It is reported that this project is the largest battery energy storage project in South America.
html On March 22, the People's Government of Pengshan District, Meishan City, Sichuan Province and China New Aviation held a signing ceremony for the power battery and energy storage system Meishan base project in Chengdu. The total planned investment of the project is approximately 10 billion yuan.
html On the evening of March 17, Sunwanda (300207) announced that the company's subsidiary Sunwanda Electric Vehicle plans to invest in the construction of the "Sinwanda Shifang Power Battery and Energy Storage Industry Production Base Project (tentative)" within the jurisdiction of Shifang City. "The project plans to invest a total of 8 billion yuan to build a 20GWh power battery and energy storage battery production base. In February this year, Xinwangda invested 20 billion yuan to build a new base in Zaozhuang, Shandong, with a planned area of 1,000 acres and a construction area of about 1 million square meters. It mainly builds power batteries, energy storage batteries and supporting production bases with an annual output of 30GWh.
html On the evening of March 10, Yiwei Lithium Energy (300014) announced that its subsidiary Yiwei Power plans to invest in the construction of a 20GWh square lithium iron phosphate battery production line and auxiliary facilities project and a 48GWh power energy storage battery production line and auxiliary facilities in Jingmen High-tech Zone. Projects and investment projects total fixed asset investment of approximately 12.6 billion yuan.
html On December 28, Zhuhai Guanyu (688772) announced that it plans to invest in a high-performance new lithium-ion battery project in Chongqing. The project is expected to have a total investment of RMB 4 billion and will build six new high-performance lithium-ion battery intelligent production lines. , forming an annual production capacity of 15GWh high-performance new lithium-ion batteries, mainly energy storage batteries. It is planned to start construction in 2022 and be completed and put into production in 2025.
html On December 17, LG New Energy announced that the company officially acquired 100% of the shares of NEC Energy Solutions (NEC ES), an energy storage system manufacturer based in the United States of Nippon Electric Co., Ltd. (NEC), and established a new legal entity, LG New Energy Vertech, to enter the field of storage. Energy system integration market. LG New Energy revealed that as the global energy storage system market continues to expand, more and more customers have asked battery manufacturers for integrated energy storage system solutions. In the future, the company will independently build a large-scale energy storage system, no longer subject to battery supply issues, and respond to customer needs in a more timely manner.
html On December 8, Lishen Battery held the groundbreaking ceremony of the Chuzhou base project in Quanjiao County, Chuzhou City, Anhui Province. Lishen Battery’s Chuzhou base project plans to produce 36GWh of power batteries and energy storage batteries annually, with a total investment of approximately 15.2 billion yuan.
html On December 8, the strategic cooperation signing ceremony between the Gao'an Municipal People's Government and Sunshine New Energy, a subsidiary of Sungrow (300274), was held in Hefei, Anhui. It is planned to invest more than 10 billion yuan in Gao'an to build an energy storage system equipment manufacturing base with an annual production capacity of 10GWh, 2GW +200MW/400MWh wind and solar energy storage green application projects and 500MW/500MWh energy storage application demonstration projects.
html On December 6, China Huaneng Group Co., Ltd.’s e-commerce platform announced the winning bid results for Huaneng’s energy storage battery cell procurement. Xiamen Haichen New Energy Technology Co., Ltd. successfully won the bid. Local media in Xiamen reported that Haichen New Energy won a large order exceeding 1 billion yuan in the beginning of spring. It is reported that the energy storage cells purchased for this project are Haichen New Energy 280Ah energy storage cells with a total capacity of 2GWh.
html On the evening of November 20, Desay Battery (000049) announced that the company plans to set up a holding subsidiary in Changsha Wangcheng Economic and Technological Development Zone to build the "Desay Battery Energy Storage Cell Project". The project plans to invest 7.5 billion yuan in fixed assets. , the energy storage cell project headquarters, R&D center and production center with a production capacity of 20GWh will be laid out in three phases.
html On November 19, Lufeng City and Beijing Best New Energy Technology Co., Ltd. officially signed a contract for a 5GWh lithium iron phosphate energy storage battery production project in the carbon-neutral energy storage industrial base. The total planned investment in the project is 2.5 billion yuan.
Conclusion : Driven by the goals and commitments of countries around the world on renewable energy and various power market opportunities, the energy storage industry is expected to usher in a new era of high growth and development. However, it is undeniable that behind the boom in policies, capital, and investment, the energy storage industry still faces many difficulties such as technological innovation, performance improvement, cost relief, optimization of standard systems and certification procedures, market mechanisms, and business model construction.
For example, in addition to potential safety accidents such as fires and explosions, production capacity constraints and rising raw material prices also plague the energy storage industry.Recently, China Tower will join Tianyi and Yipeng Energy into the national "blacklist" because it failed to complete full delivery before the red line time in accordance with the contract performance assessment requirements and the delivery ratio gap was large. Industry insiders speculate that rising raw material prices are the main reason for the battery delivery default. As raw material prices continue to rise, some listed companies in the energy storage battery field have stated that they will raise prices across the board starting in 2022. This also reflects the increasing pressure on energy storage battery companies to "reduce production costs and improve delivery efficiency."
In short, the energy storage industry at the forefront is expected to usher in the "best era", but high-quality development has "a long and difficult road ahead".
