Even tariff increases cannot stop cooperation! CATL and its Taiwanese factory win US energy storage orders

Li Kai, a battery positive electrode material manufacturer in Taiwan, revealed that the US energy storage manufacturer Powin Energy signed a supply contract with China's CATL for 1.85GW of battery cells. The positive electrode materials are supplied by the company and have been shipped since August. In addition, high-gross-margin LG products are also shipped, so the outlook for third-quarter operations is optimistic.

Li Kai said that the company has had a cooperative relationship with CATL for a long time, but CATL's focus has been mainly on electric vehicles. However, the related industry has never been able to achieve substantial growth. However, the energy storage market is different, because CATL's energy storage business mainly produces battery cells, modules, electric boxes and battery cabinets.

Li Kai pointed out that CATL accelerated its layout in the energy storage market in 2018. Huang Shilin, chief strategy officer of CATL, also believed that the average cost of energy storage in 2020 will be less than RMB 0.25, reaching the critical point of industrialization.

Li Kai said that for this US energy storage order, the company estimates that it will ship thousands of metric tons of positive electrode materials. Shipments have already started in August this year, and it is estimated that all orders will be shipped in three years.

It is understood that the energy storage system planned by CATL and Powin Energy will be installed in the United States and Mexico. It will store electricity through cheaper electricity prices at night and sell electricity when electricity prices are high during the day.

It is worth noting that lithium batteries have also been subject to a 25% tariff as a result of the US trade war. However, the United States itself only has one battery factory. However, Powin Energy is still willing to sign a battery cell supply contract of 1.85GW with CATL in China. In other words, despite the interference of the trade war, it still cannot stop the development needs of the industry trend.