The market for Li-ion energy storage batteries is booming as countries around the world adopt strategies for attaining carbon neutrality. Chinese battery supplier Farasis Energy wants to take advantage of this trend and leverage its advanced technologies related to EV power batteries to establish a presence in the market for energy storage solutions.
On September 16, Farasis announced that it has signed an investment agreement with the management authority of the Dian Zhong New Area and the municipal government of Anning. Under the agreement, Farasis will set up an LFP battery manufacturing project in a local industrial park in Anning. Both Anning and the Dian Zhong New Area are within China’s Yunnan Province.
The project will have a total production capacity of 24GWh per year and be developed in two 12GWh phases. Once up and running, the project will manufacture mostly LFP batteries for energy storage systems. The construction period of the project is estimated to take 36 months. Farasis has yet to disclose the total investment.
In its statement about this project, Farasis said LFP batteries are suitable for energy storage applications due to their advantages such a higher safety level and a more competitive price. The company believes LFP batteries will be able to quickly expand their presence in the market for energy storage solutions in the near future.
Moreover, setting up production capacity for energy storage batteries will enhance the company’s overall competitiveness and create new sources of revenue growth. Specifically, the manufacturing project in Anning will expand its portfolio, diversify its offerings, and optimize its product mix.
Market intelligence firm TrendForce points out that Farasis established an energy storage business unit in 2019. The company took the first step in expanding into the energy storage battery market by capturing a tender from China Tower, which is a state-owned telecommunication company. In terms of progress in product development, Farasis has pushed its energy storage batteries to the pilot-scale production phase. The company continues to find ways to extend the cycle life of these products. Additionally, the company is developing energy storage solutions based on the Na-ion battery technology, which can provide an even more significant cost advantage. The Na-ion energy storage batteries are also in the pilot-scale production phase.
Formed in 2009, Farasis’s core businesses are Li-ion EV power batteries and energy storage systems. The company has the capability to design, manufacture, integrate, and install power battery products. Its main battery technology offering is high-nickel ternary batteries (encompassing cells, modules, and packs).
Looking at its client base, Farasis currently supplies batteries to well-known carmakers and automotive brands such as Mercedes-Benz, Beijing Benz Automotive, GAC Aion, China FAW Group, Geely Auto, Dongfeng Motor, Enovate Motor, JMC, and Mitsubishi. Farasis is also in the process of forming a business relationship with Volkswagen, Audi, and Porsche.
Recently, Farasis has introduced “Super Pouch Solution (SPS)” that encompasses all system levels (i.e., from cells to whole systems) and the entire lifecycle (i.e., from manufacturing to recycling). The related products featuring the Na-ion (first-generation) and LFP technologies are expected to be launched next year. Farasis also stated that it aims to raise the energy density of Na-ion batteries from 160Wh per kg to 220Wh per kg by 2030.
With regard to production capacity in China, Farasis is currently operating or building factories in Ganzhou, Zhengjiang, Wuhu, Peiling. As for production capacity outside China, the company has production sites and R&D centers in the US, Germany, and Turkey.
At a recent product launch event, Farasis also revealed its latest capacity expansion strategy. In China, the company now has 130GWh in operation or development. The 24GWh production site in Zhengjiang is now operational. The 46GWh production site in Ganzhou will be activating 12GWh by the end of this year and has 30GWh in construction. The 24GWh production site in Wuhu is being developed in two phases, with each adding 24GWh. The facility design along with preliminary groundwork has commenced for the first phase. In additional to all these, Farasis intends to add 36GWh in the southwestern part of China as well. Turning to overseas manufacturing projects, Farasis currently plans to set up 16GWh in Europe.
Thanks to the activation of new production capacity, Farasis generated RMB 5.223 billion in revenue for the first half of 2022, showing a massive year-on-year growth rate of 495.48%. Of the half-year total revenue, products related to energy storage systems accounted for RMB 3.666 million.
This article is a translation of a Chinese article posted by TrendForce. It contains information that is either sourced from other news outlets or accessible in the public domain. Some Chinese names are transcribed into English using Hanyu Pinyin.