CATL's energy storage battery business generated revenue of RMB 59.9 billion in 2023, contributing 14.94 percent of the total.
Chinese battery giant Contemporary Amperex Technology Co Ltd (CATL, SHE: 300750) has launched its new energy storage system Tianheng, or Tener, to further tap the energy storage market.
The company rolled out Tianheng at an event on April 9, saying it is the world's first mass-producible energy storage system with 0 degradation for 5 years.
Tianheng is a standard 20-foot containerized energy storage system equipped with CATL's energy storage-specific L-series long-life lithium iron phosphate cells.
The energy density of the storage system is 430 Wh/L with a total capacity of 6.25 MWh, which CATL claims is the highest in the world.
Tianheng has a cycle life of more than 15,000, which is 1.7 times the current mainstream level, and will not decay in the first five years of its 20-year life expectancy, CATL said.
Demand for energy storage systems is climbing rapidly as new energy generation continues to grow.
By the end of 2023, China's share of wind and photovoltaic power generation reached 15.3 percent, and in some regions exceeded 20 percent, said Hui Dong, chief technology expert at the China Electric Power Research Institute, at CATL's launch event.
However, the actual operating life of power-based energy storage systems in China is currently less than three years on average, compared with an expected life of 10 years, and the actual operating life of energy-based energy storage systems is less than eight years on average, compared with an expected life of 15 years, Hui said.
As the new energy sector grows, demand for energy storage will continue to grow, placing higher demands on the regulation capabilities of energy storage systems, Hui noted.
CATL has been involved in 0-attenuation long-life battery technology for a long time, achieving a balance between energy density and safety on the Tianheng system, said Xu Jinmei, CTO of the company's energy storage business unit.
The Chinese battery giant's revenues are now mainly contributed by power batteries, while its energy storage business is growing rapidly.
CATL's revenue for the full year of 2023 was RMB 400.92 billion ($55.4 billion), up 22 percent year-on-year, according to its 2023 results report announced on March 15.
The power battery business generated revenue of RMB 285.25 billion in 2023, up 20.57 percent year-on-year, contributing 71.15 percent of the total.
Its energy storage battery business revenue was RMB 59.9 billion, up 33.17 percent year-on-year, contributing 14.94 percent.
CATL's chairman Robin Zeng estimated last year that by 2030, the energy storage business revenue would be comparable to the automotive battery business.
($1 = RMB 7.2323)
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