From March 2022, China telecom giant Huawei will sell large battery systems for renewable energy storage in Japan, supply from battery makers including CATL, earlier reports said. This will be a big step for Huawei to develop the energy storage business in Japan.
Huawei invests in Japanese energy storage as Japan transits from fossil fuels to renewable energy.
According to an earlier report by Nikkei Asia, the large-scale battery systems for renewable energy storage that Huawei will sell in Japan this time are mainly sourced from multiple battery manufacturers, including the biggest battery company in china, CATL.
Huawei will combine small battery packs into container-sized units for Japanese customers. The capacity can be adjusted according to the actual application needs. Still, the specific battery cell used is unable to disclose at present.
“The energy storage project is the world’s largest and has strategic significance and a significant influence on the worldwide energy storage industry’s development,” Huawei stated.
In fact, Huawei has now become a significant player in the field of lithium-ion battery energy storage, as at the end of October last year Announced the signing of a contract with Shandong Electric Power Construction Company for the construction of a 1300MWh energy storage project in Saudi Arabia.
Companies operating related businesses in Japan include the well-known electric vehicle brand Tesla. Tesla has been selling large-scale battery projects in Japan since 2021 and has gained an essential place in the market. Huawei’s entry will undoubtedly significantly change the market structure.
Noting that another Chinese company, JinkoSolar, is also preparing to enter Japan to develop the battery business. The cost of manufacturing batteries produced in Japan is about 4.8 times that of Chinese and American companies. Chinese and American companies’ cost and technological advantages will also make it difficult for Japanese energy storage companies, including Sumitomo Electric Industries, NGK Insulators, and others.