Samsung SDI Co. Ltd. announced recently that it has inked a preliminary agreement with Sungrow Power Supply Co. Ltd. of China to create a joint venture to develop energy storage systems in China.
The two companies are planning to build a production facility next year. Samsung SDI did not give any details as to how much it is investing for the project. It also stated that a location for the facility has not been decided yet.
The joint venture is said to be costing the companies upwards of $20 million. CEO of Samsung SDI, Sangjin Park said “This will become the cornerstone of pioneering and dominating the Chinese ESS market expected to grow greatly in the future.”
Since the market for batteries for electric vehicles has not been as vigorous as expected the technology giant is holding hopes that the project will boost this sector of the industry and promote wider adoption of solar storage.
About Samsung SDI
Samsung SDI has been a leader in the industry of energy storage systems. Its market share in the sector has been the largest since 2010. Following the release of their All In One 3.6 kWh lithium ion battery and management system, the famous electronics company has become the leader in the development of more affordable home energy storage in Australia.
With this agreement, the electronics company hopes to increase its share in the Chinese market by producing energy storage systems on Chinese soil. The construction of the facility will start next year, and the production of solar panels in the second half of 2015.
Sungrow is the leading manufacturer of solar power inverters in China and the third largest in the world, which are vital components of any solar system. The agreement between the two companies was signed in Hufei, the headquarters of Sungrow Power Supply Co. Ltd.
With the project’s completion, and with the subsequent production of solar energy battery packs locally, Samsung SDI will be able to upgrade its market share and business concerns in China. The company will also be able to establish synergy with the electric car cell battery plant in Xian.
Sungrow The Preferred Brand For Australian Consumers
Sungrow’s PV inverters have gained popularity in Australia due to a wide range of attractive features. The company’s products are well known in the industry for their high quality and reasonable prices even when compared to more expensive brands.
Samsung and Sungrow are taking advantage of the worldwide trend favouring the deployment of energy storage. Based on a study by Lux Research, the global market for solar storage is projected to grow at a compound annual growth rate of 8% to $50 billion by 2020. The increasing demand is spurred by transport applications.
It is in the residential sector where the biggest increase in the market for solar storage is expected. Studies by Lux Research point to a jump from less than $0.1 billion at present to about $1.2 billion by 2020.
Currently, Germany is the leading energy storage system producer, due to the generous help it receives from incentives. Increasing number of customers opting to install battery systems has made them very affordable for German consumers.
With the signed agreement between Samsung and Sungrow, and the subsequent establishment of the production facility in China, the technology will be more accessible and affordable to interested customers in other Asian countries, not just in China.
