CATL launches its first battery energy storage system in the U.S.

Chinese electric vehicle battery maker Contemporary Amperex Technology Co., Ltd. (CATL) plans to enter the U.S. energy storage market and will debut a residential energy storage system at the 2019 Solar Energy International (SPI) exhibition, according to media reports.

CATL is a world-renowned electric vehicle (EV) battery manufacturer, saying it has a 41% global EV battery market share and is working with automakers such as BMW, Volkswagen, Daimler, and Jaguar Land Rover.

CATL has decided to enter the rapidly growing US energy storage market. According to its promotion plan, it will launch two residential energy storage products using 100Ah batteries in the future. In addition, it will showcase its new generation of batteries and rack products, whose batteries have improved energy density, have a working life of up to 20 years, and are equipped with an efficient air cooling system that can save 30% of energy consumption.

Tan Libin, vice president of CATL's energy storage business unit, said: "As demand for renewable energy continues to increase around the world, the need for energy storage infrastructure is also increasing, especially in the United States. We look forward to providing highly customized, safe and reliable energy storage solutions to its renewable energy companies and consumers."

CATL said that its first battery energy storage system will be aimed at the residential market, and there will be more energy storage applications in the future. The current plan is to develop energy storage business in the United States so that energy storage products can be deployed in conjunction with large-scale renewable energy power generation facilities.

CATL's investment will have a greater return, according to a survey report released by the U.S. Department of Energy's Energy Information Administration (EIA), which predicts that energy storage system deployment capacity will more than double by 2023, reaching an installed capacity of 2,500MW, but these are mainly grid-scale battery projects, which means the company needs to fully utilize its product advantages and apply its battery energy storage projects to large-scale projects.

CATL opened its first North American sales and service facility in Detroit, Michigan, in December 2018. The company has not yet said if or when it will add additional production facilities to support its entry into the U.S. energy storage market, but this seems likely.