China’s Sungrow Power Supply Co. Ltd. and South Korea’s Samsung SDI Co. Ltd. has signed a preliminary deal to form a joint venture for making energy storage systems in China.
According to the deal signed on August 17th, the two companies will build a production facility in 2015. Samsung SDI, a maker of electronics components, did not disclose how large the joint investment will be and said the location has yet been decided.
Reuters reported that Samsung SDI and other electric vehicle battery makers are increasingly betting on energy storage systems to hedge their bets as the market for electric vehicle batteries has lagged expectations. By cooperation with one of China’s largest PV inverter and product makers, the new joint venture is expected to develop, produce, sell and deliver energy storage systems in China.
The final agreement is planned to be signed on October 31st.