Energy storage suppliers shift strategies amid market competition

The energy storage market is seeing significant shifts in bankability and supply chain strategies. In the latest Q2 bankability report, CATL was upgraded to AAA, while Wärtsilä was downgraded to BB. Other Chinese lithium-ion and battery energy storage system (BESS) players, including Rept Battero, CALB, and Eve Energy, reported strong profit increases. Meanwhile, US-based system integrator Fluence reached a record backlog of US$5.6 billion.

To maintain its ability to supply the US market, Chinese energy storage supplier Sungrow plans to procure battery cells from South Korea’s Samsung SDI. The cooperation aims to support Sungrow’s energy storage system deliveries to the United States. While specific commercial terms and volumes remain undisclosed, reports suggest the agreement could involve several gigawatt-hours of lithium iron phosphate (LFP) cells annually. This move comes as Chinese suppliers face intense domestic competition and margin pressure, prompting increased expansion into international markets.