BYD has signed an agreement with Spain’s Grenergy to provide renewable energy power facilities using its blade-shaped batteries for a $1.4 billion energy storage operation in Chile’s Atacama Desert, which the companies claim to be the largest of its kind globally.
Why it matters: The deal is the latest in BYD’s efforts to scale up its energy storage business and lead in areas beyond electric vehicles, venturing into the booming renewable energy sector, as global EV sales are reportedly poised for slower growth due to lower state subsidies this year.
Details: BYD will provide Grenergy with a total of 2,136 large-scale energy storage systems powered by 1.1 gigawatt-hours (GWh) worth of its so-called blade battery, which boasts efficient space utilization and high thermal stability in a thin and lengthy form, according to a statement.
- Grenergy will incorporate them in the first two phases of the Oasis de Atacama project in northern Chile, set for full operation within two years, and with a total capacity of 4.1 GWh and 1 gigawatt (GW) of solar installations.
- The Spanish renewable energy group said it expects to complete construction of the largest energy storage project worldwide within three years. The project consists of five phases with a total investment of $1.4 billion.
Context: BYD had captured around 11.5% of the global energy storage system market with shipments of 14 GWh worth of batteries in 2022, industry tracker SNE Research said in an annual summary dated March 2, 2023. This places it ahead of South Korea’s LG Energy Solution and Samsung SDI, but significantly behind leader CATL, which controlled more than 40% of the market.
- Having facilitated several solar power and battery storage facilities in the US, CATL said last March that it would supply 450 megawatt-hours (MWh) of lithium-ion batteries for a Texan storage project. A single GW is equal to 1,000 megawatts.
- Tesla is also reportedly doubling down on its energy business with the April announcement that it was setting up a new facility in Shanghai capable of annually making 10,000 large-scale, energy-storage battery systems. It deployed 6.5 GWh of energy storage in 2022.
- The US automaker estimates that to fully convert the world to sustainable energy will require a total capacity of 2,310 GWh per year of electric-chemical battery storage systems. Chinese battery maker Svolt expects that, in the best case scenario, that number could be achieved in 2030.
Related
