Sungrow ‘has no lithium-ion production plans at the moment’ while other China BESS providers move upstream

LinkedIn
Twitter
Reddit
Facebook
Email

This article was amended today (29 February 2024) after it was initially published yesterday. A director originally told Energy-Storage.news that Sungrow had aspirations to launch its own lithium-ion battery manufacturing line, however the company has since told us that it has “no plans to build our own lithium-ion production line at the moment”. 

Sungrow tells Energy-Storage.news that it does not currently have plans to launch its own lithium-ion battery cell production for battery energy storage system (BESS) products, a route being taken by other China-based system integrators. 

This article requires Premium SubscriptionBasic (FREE) Subscription

Enjoy 12 months of exclusive analysis

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Annual digital subscription to the PV Tech Power journal
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

In a statement, a spokesperson for the Hefei-headquartered inverter and BESS company said: 

“Sungrow has combined the electrochemistry, power electronic and grid support technology to being a qualified ESS system provider. We have our cell technology to ensure the battery system performance and quality to be controlled in the best way.” 

“As such, our approach is to continue our strategic partnerships with lithium-ion battery suppliers. There are no plans to build our own lithium-ion production line at the moment.” 

For clarity, the firm’s ‘cell technology’ means its cell performance analysis, cell assembly & testing technology, early identification of thermal runaway and internal short circuits, as well as SOC (state of charge) balancing optimisation.

Other China players vertically integrating upstream and downstream

The company was speaking to the site at the Energy Storage Summit EU for a Premium interview last week. Solar PV giant Trina Storage launched its latest BESS solution which uses in-house manufactured lithium-ion cells at the event.

Trina’s move is part of a wider industry trend of China’s BESS providers moving upstream and manufacturing their own battery cells to integrate into BESS systems. The trend has been noted previously by industry commentators including BloombergNEF’s head of energy storage Yayoi Sekine when it launched its BESS Tier 1 list in January (Premium access).

Downward vertical integration has already happened, with battery manufacturing companies like CATL, BYD and LG Energy Solution launching their own integrated BESS products. Sungrow, Huawei and BYD were in the top five BESS providers by 2022 deployments according to Wood Mackenzie.

Benefits of using in-house cells in BESS solutions include a more integrated design, potentially allowing integrators to better maintain quality and for mitigate potential fire safety risks.

It also allows providers to offer an energy density superior to pure-play system integrators, whose modular design allows for optionality but at the expense of energy density. Energy density is becoming key for the industry.

Read Next

Premium
May 21, 2025
ESN Premium speaks with Dr. Yinghuang Ji, head of structuring at MN8 Energy, on current challenges and opportunities for growth in the energy storage market.
May 20, 2025
Developer and independent power producer (IPP) Zelestra has ordered 1GWh of BESS technology plus PCS equipment from Sungrow for a project in Chile.
Premium
May 19, 2025
Chile, China and Australia drove global BESS deployments in April, a month which saw nearly 9GWh of grid-scale capacity enter commercial operations.
May 16, 2025
In a contrasting double-header of news for the US energy storage ecosystem, Our Next Energy (ONE) has launched US-made cells, modules and BMS while BESS manufacturer American Energy Storage Innovations (AESI) is winding down its business.
May 16, 2025
The battery storage arm of Canadian Solar expects to make between 7GWh and 9GWh of shipments this year, with the final figure dependent on trade policy developments.

Most Popular

Email Newsletter