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Gotion High-Tech and SUMEC to Jointly Develop 10GWh of Energy Storage Projects in Next Three Years

published: 2022-10-28 9:30

The industry for energy storage systems has entered a critical growth period as countries around the world pursue policies that aim to cap and reduce greenhouse gas emissions. Gotion High-Tech as one of the leading Chinese battery suppliers continues to expand its presence in both the markets for NEV power batteries and energy storage systems. In the field of energy storage, Gotion has partnered with many domestic and foreign companies residing in the PV and energy storage industries. By working with the major players in the related sectors, Gotion hopes to extend and strengthen the supply chain for battery energy storage systems.

Gotion High-Tech and SUMEC signed a strategic cooperation agreement on October 9 and announced the event on October 11. The agreement entails full-scale cooperation in electric power engineering, especially the area of energy storage. Furthermore, they will be jointly developing 10GWh of energy storage projects over the next three years.

Representatives of Gotion High-Tech and SUMEC were at the signing ceremony. (Source: Gotion High-Tech)

With the formation of this partnership, both parties will be focusing on setting up energy storage projects in their home country, capturing opportunities in the overseas markets for energy storage technologies, and exports of their products and services. Regarding energy storage projects in China, both parties plan to make inroads in application segments such as large-scale centralized energy storage plants, energy storage solutions for e-mobility, and battery banks. Together, they will ramp up efforts in landing projects. Under the condition of an equal partnership, SUMEC will give priority to Gotion in selecting products and services for joint projects.

In overseas markets, both parties will be pushing their solutions to application segments such as home energy storage equipment, commercial (industrial) energy storage equipment, and projects that integrate PV, diesel-fired generation, and energy storage. They will jointly develop and promote solutions to foreign customers.

With regard to exports, SUMEC will serve as a one-stop window that allows Gotion High-Tech to gets its products and services delivered to North America, Africa, Europe, and Southeast Asia. SUMEC has already accumulated a vast amount of experience in exporting electric power equipment to these regions. Additionally, Gotion will leverage SUMEC’s capability to fundraise in overseas markets as it builds production plants in other countries.

Gotion has been very aggressive in adding production capacity outside China this year. On June 27, it announced its intention to build a major battery manufacturing base in Göttingen, Germany, in order to better serve the European market. This base will also be the company’s first in Europe. Gotion is also proceeding with its plans to set up production sites for NEV power batteries and related components in other regions including North America, Southeast Asia and South Asia. The company has stated that these overseas sites will adopt next-generation manufacturing technologies.

Turning to SUMEC, it was established in 1978 as a key member company of the state-controlled SINOMACH. Its portfolio encompasses import-export services, engineering services, supply chain management, green solutions (including green energy), and investment services. The company was listed in 2016.

Regarding green solutions, SUMEC manufactures and sells PV modules, provides integrated energy services, and develops green energy projects. For the first half of 2022, SUMEC’s revenue from green solutions came to RMB 3.672 billion, showing a year-on-year growth rate of 56.41%. The profit of its green business for the same period reached RMB 237 million, showing a year-on-year growth rate of 39.62%.

By the end of 2021, SUMEC had 41 overseas branches and was operating in 150 countries and regions. Its core advantages are its sales channels, fundraising capability, network for aftersales services, and expertise in international trade. As of now, SUMEC has 500-plus DG projects that are in development, construction, or operation. These projects are mainly serving industrial and commercial end users. Furthermore, SUMEC has domestic projects related to data centers, which on the whole have a huge amount of demand for energy storage technologies.

Commenting on the strategic cooperation agreement with Gotion, SUMEC has said that much of the close collaboration will revolve around energy storage projects and high-end equipment. SUMEC hopes that joint projects will be the basis of their partnership. The synergy of both parties are expected to yield many impressive results when it comes to capturing business opportunities, technological R&D, application development, and overseas expansion.

As for Gotion, it has said that it has been concentrating on energy storage for 17 years, and the strategic cooperation agreement with SUMEC will allow both sides to mutually benefit from each other’s resources and supply chains. Gotion therefore looks forward to in-depth collaboration with SUMEC in areas such as large-scale centralized energy storage plants, energy storage solutions for e-mobility, and battery banks.

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.

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