Due to the promotion of policies related to capping and reducing carbon emissions, the global market for energy storage technologies is experiencing rapid growth. Many companies have also entered the related supply chains as they sense huge business opportunities. On May 22, Chinese battery suppliers Great Power and Zhuhai CosMX Battery announced their new battery manufacturing projects that are worth billions of yuan in investments. Both projects will be focusing on energy storage batteries.
Great Power Plans to Build 36GWh Battery Project in Qingdao
According to Great Power’s announcement, the company will set up “Energy Storage No. 1” project in Qingdao, which is a city in China’s Shandong Province. The project is designed to have a production capacity of 36Wh per year. It will be built over three phases with each comprising 12GWh. The total investment in this project comes to around 13 billion yuan. The phase 1 of the project is scheduled to begin construction this September and enter operation by the end of December 2024.
Great Power said this investment aligns with its long-term growth strategy and will enhance the allocation of its production capacity. Furthermore, the project will assist the company in bolstering its influence and overall competitiveness in the market for energy storage batteries. The project will contribute to future growth and market expansion, thereby having a positive and far-reaching effect on the company’s business operations.
Earlier on April 4, Great Power announced a plan to set up facilities for manufacturing energy storage batteries. Specifically, its wholly-owned subsidiary Quzhou Great Power would build a 21GWh energy storage battery project in Quzhou’s Smart Manufacturing City Zone. Quzhou is a city in China’s Zhejiang Province. The project would entail an investment of 7 billion yuan. According to the development schedule, construction is to begin near the end of this June, and the project is expected to enter operation before the end of December 2026.
Currently, Great Power is adding new production lines for outputting energy storage batteries at its production bases in Quzhou, Changzhou, Henan, and Liuzhou. Many of them is scheduled to begin operation in the third quarter of 2023 and make tangible contributions to the company’s production capacity for energy storage batteries in the following quarter.
In terms of financial performance, Great Power had a strong first quarter this year, with realized revenue rising by 50.14% YoY to around 2.495 billion yuan and net profiting rising by 101.46% YoY to around 182 million yuan. Great Power attributed this growth primarily to the expansion of its energy storage business. Sales of its products for utility-scale and residential energy storage surged.
CosMX Plans to Build Project in Sichuan for Manufacturing Energy Storage and NEV Power Batteries
According to Zhuhai CosMX Battery’s announcement, its holding subsidiary Zhejiang CosMX plans to set up a battery manufacturing project in Deyang, which is a city in China’s Sichuan Province. The investment for the phase 1 of the project is capped at 10.3 billion yuan. The production capacity of the phase 1 is set at 25GWh per year. CosMX aims to start construction within these six months and complete the entire project within 48 months following from the groundbreaking. The project is expected to output batteries for both energy storage equipment and NEVs.
CosMX said this investment is a part of the subsidiary’s growth strategy and will significantly increase the scale of its NEV power battery business and energy storage battery business. Furthermore, the investment enables to the company to seize current market opportunities and improve its overall strength.
According to the researched information disclosed by the company on May 6, Zhejiang CosMX activated 2.5GWh per year of production capacity for NEV power batteries in the first half of 2022, bringing to a total of 3GWh per year. The company is also planning to add another 10GWh per year, and some portions of this expansion are now in construction.
Additionally, CosMX’s other subsidiary Chongqing CosMX will be investing 4 billion yuan to build six smart production lines that output high-performance Li-ion batteries. Together, the six production lines will have a total production capacity of 15GWh per year. This project is still in the initial planning phase.
This article is a translation of a Chinese article posted by Marry at 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.