Shenghong Group's Energy Storage Battery Project Begins Construction,Fueling Growth in the Market
Recently, it has been reported that Shenghong Group's energy storage battery super factory and new energy battery research institute project in Suzhou has officially started construction. The project has a total investment of 30.6 billion yuan and a planned production capacity of 60GWh. It will establish an integrated base for research and development, testing and certification, and manufacturing of new energy storage batteries and system integration. This is one of Shenghong Group's recent strategic moves in the energy storage field.
Since announcing its entry into the energy storage field in October 2022, Shenghong Group has been increasing its investment in energy storage. Currently, Shenghong Group has invested over 80 billion yuan in the energy storage field, with a total production capacity of 135GWh. Among them, the planned production capacity of its energy storage headquarters project is about 50GWh, with a total investment of 20 billion yuan. The investment in phosphoric acid iron and lithium iron phosphate new energy projects in Hubei is about 18.7 billion yuan. The total investment in the new energy storage battery and system integration project signed in Taizhou reaches 12 billion CNY.
The development of the energy storage battery market is driven by the global consensus on carbon reduction and has become a key means to stabilize fluctuating clean energy generation and improve system absorption capacity. According to statistics, China's lithium battery shipments for energy storage reached 13GWh in 2022, with a year-on-year growth rate of 170%. Looking ahead, forecasts indicate that the global electrochemical energy storage market could reach 1,000GWh by 2030.
Shenghong Group, as a strong player in the energy storage field, should not be underestimated. Shenghong Group is one of the Fortune Global 500 companies, ranking 76th in total revenue among the top 500 Chinese companies. In addition, Shenghong Group ranks 15th among the top 500 private companies in China, entering the top ten for the first time.
In addition to Shenghong Group, other companies are also actively expanding in the energy storage field. Chunan New Energy, a subsidiary of Hengxin Automotive Group, has invested in three major energy storage projects in Yichang, Xiaogan, and Wuhan Jiangxia, with a total investment of 137.5 billion yuan. Xinte Group has also established a 10GWh energy storage cell project in Zhuhai. Moreover, leading battery companies in the power battery field, such as Contemporary Amperex Technology (CATL), BYD, Farasis Energy, SVOLT Energy, EVE Energy, Guoxuan High-Tech, Farasis Energy, Vision Group, and JWE Group, have also made early strategic moves in the new energy storage battery sector.
However, while the energy storage battery market represents a blue ocean, the competition will also become increasingly fierce. Although Shenghong Group is financially strong, as a newcomer to the industry, it still faces certain challenges in terms of lithium battery energy storage technology and industry resource accumulation. Therefore, whether Shenghong Group can achieve significant development in the energy storage industry remains to be seen.