According to Rolls Royce, the main power and propulsion solution provider in the UK, Rolls Royce announced on June 19th local time a partnership with Chinese battery manufacturer CATL to jointly launch a new TENER product line for CATL in the EU and the UK.
Rolls Royce collaborates with CATL to develop over 10GWh of energy storage
It is reported that TENER will be the world's first mass-produced energy storage system, with no performance degradation within five years of use, and a capacity of 6.25MWh.
According to Rolls Royce, the company has started offering TENER products as part of its mtu Energy Pack QG large-scale energy storage solution, primarily aimed at grid operators. The new partnership includes Rolls Royce based intelligent automation solution mtu Energet IQ and its digital platform mtu Go! And CATL's intelligent diagnostic platform and battery management system will develop more innovative intelligent products.
Rolls Royce stated that the new partnership will enhance the ability of the two companies to handle large-scale and complex grid level battery energy storage system projects.
Rolls Royce stated that battery storage systems are a strategic focus and growth area for its power systems division. Large or grid scale energy storage systems can integrate renewable energy (which may have intermittent or variable outputs depending on weather conditions) into the energy grid, while improving stability and reliability. This fully integrated solution enables customers to leverage the latest power grids and trading services while supporting energy transformation by creating more sustainable energy infrastructure.
Last year, Rolls Royce signed a long-term supply agreement with CATL to collaborate on the development of energy storage products exceeding 10 gigawatt hours (GWh). The two companies have jointly established a close cooperative relationship, integrating TENER products into mature EPC turnkey projects and providing turnkey services. According to specifications and specific uses, the new TENER product can achieve zero attenuation within the first five years of use.
It is worth mentioning that this is not the first collaboration between Rolls Royce and CATL. After checking Rolls Royce information, it was found that Rolls Royce's first pure electric vehicle brand, the Flashing, is equipped with front and rear dual motors. Preliminary data shows a maximum power of 430kW (589Ps), a maximum torque of 900Nm, and an acceleration time of 4.5 seconds from 0-100km/h. In terms of battery life, equipped with a 120kWh power battery, the CLTC has a comprehensive range of 585km, and its battery provider is CATL.
Ningde Era Energy Storage European Market Will Increase Volume
In April of this year, CATL released a brand new energy storage system, which simultaneously achieves 4-dimensional true safety, 5-year zero attenuation, and 6MWh level high energy characteristics. The energy density per unit area has increased by 30%, and the land area has been reduced by 20%. At the same time, zero capacity attenuation and zero power attenuation have been achieved in the first 5 years, which can be mass-produced and delivered.
Recently, at the energy storage exhibition in Munich, Germany, Zhao Han, a senior executive of CATL and Chief Technology Officer of ESS Europe, and Kevin Tang, Director of ESS Europe, explained in response to questions that this is due to the use of pre lithiation or lithium compensation technology to reduce lithium ion consumption during battery cycling and achieve the goal of anti attenuation.
The energy storage business, as the second growth curve of CATL, has shown outstanding growth rate this year. From the financial report data, Ningde Times achieved sales of 390GWh of lithium-ion batteries in 2023, a year-on-year increase of 34.95%, including sales of 321GWh of power battery systems, a year-on-year increase of 32.56%; The sales volume of energy storage battery systems was 69GWh, a year-on-year increase of 46.81%.
The revenue of energy storage battery systems in Ningde Times in 2023 accounted for 14.94% of the total revenue.
In 2024, the proportion of this business has rapidly increased. According to the investor relations activity record released by CATL on April 16th, it was mentioned that the company's battery sales in the first quarter reached approximately 95GWh. Among them, energy storage business accounts for nearly 20%, indicating the rapid growth of Ningde Times in energy storage business.
According to the first quarter report of Ningde Times in 2024, the company's total operating revenue was 79.77 billion yuan, with a net profit attributable to the parent company of 10.51 billion yuan and a non deductible net profit of 9.25 billion yuan, a year-on-year increase of 18.6%; The operating cash flow remained strong, reaching 28.36 billion yuan; At the end of the period, the monetary funds reached 288.6 billion yuan. Among them, the contribution of energy storage is increasing.
In terms of gross profit margin, Ningde Times reported a relatively stable unit gross profit in the first quarter. Among them, the gross profit margin of energy storage business in 2023 was 23.79%. Industry analysis indicates that Ningde Times has high profitability and great growth potential in this business.
As of now, in the overseas market, CATL Energy Storage Batteries have helped Nextera achieve the world's largest photovoltaic storage unit project with a scale of 1.8GWh connected to the grid; Delivering 6.4GWh of the world's largest energy storage project group to ENEL, the Italian national electricity company; Delivering 3.8GWh of Australia's largest independent energy storage project to Synergy, a Western Australian power company.
It is worth mentioning that CATL has also reached a cooperation agreement with FlexGen, an energy storage technology platform and solution provider. CATL will supply 10GWh of advanced energy storage products to FlexGen within three years.
Postscript
This cooperation will not only enhance the competitiveness of Rolls Royce and CATL in large-scale and complex grid scale battery energy storage system projects, but also help promote mutual development in the field of new energy and related technologies.
For Rolls Royce, cooperation with CATL will help it achieve diversification and technological upgrades in battery storage systems, while for CATL, it can leverage Rolls Royce's brand influence in the high-end market to further enhance the market competitiveness of its products.