Rushing to Integrate! Foxconn/Baoshan Iron & Steel Group/Kaller Enter Energy Storage Market Against the Wind

The story of energy storage integration continues. Although the energy storage market experienced growing pains in 2023, with intensifying internal competition, overcapacity, price wars, industry reshuffling...the trillion yuan market still exists, and the "irresistible temptation" has led many companies to choose to "enter the market against the wind."

Battery China learned that recently, BAOSHAN IRON & STEEL Co., Ltd. spent 380 million yuan to establish a wholly-owned subsidiary, Shanghai Baosteel Xincxiangneng Technology Co., Ltd., entering the energy storage sector. Its business scope includes solar power technology services, photovoltaic equipment and component sales, wind power technology services, energy storage technology services, and more.

Records show that BAOSHAN IRON & STEEL Co., Ltd. was solely founded by the Shanghai Baowu Iron & Steel Group. In December 2000, it was listed on the Shanghai Stock Exchange and is a world-leading modern steel enterprise. In April 2023, Baoshan steel's grain-oriented silicon steel was successfully applied in the construction of the Yazhongjiang Two Rivers Mouth Hydropower Station and Kela Photovoltaic Power Station Project of the water-photovoltaic complementary Phase I project. In recent years, Baosteel's grain-oriented silicon steel team has participated in multiple new energy power generation projects such as the Gansu Jiuduntan Photovoltaic Power Station and Daxiatan Xitai Photovoltaic Power Station.

Foxconn is another company actively "integrating" into energy storage. Last week, Foxconn Technology Group announced that it has signed an agreement with Ecloud Capital to jointly establish a green energy asset management company and plans to initiate a green energy development fund. The two parties will jointly establish a green energy asset investment company with a total capital of 2 billion yuan, focusing on green power generation projects. They also plan to initiate a green energy development fund with a target size of 7 billion yuan, jointly laying out the solar energy, wind energy, and supporting energy storage industries to expand their green energy business in mainland China.

It is reported that Foxconn entered the new energy field as early as 2011, mainly focusing on the photovoltaic industry. Afterwards, it established two new energy companies in 2011 and 2015 respectively, and cooperated with companies such as China Southern Power Grid and local governments like Foshan to jointly build photovoltaic projects. In 2023, Foxconn also acquired a 2.39% stake in Shanghai Caizhao Energy, officially entering the energy storage industry.

In addition, Kaller, a leading industrial fan company in China, has also discovered the "fertile ground" of energy storage. Recently, its subsidiary Anringzhe Energy registered a new company, Zhejiang Anringzhe Energy Storage Co., Ltd., with a registered capital of 10 million yuan. Its business scope covers battery sales, electric vehicle charging infrastructure operation, contract energy management, new energy technology research and development, electrical equipment sales, charging pile sales, and more.

It is understood that Kaller was established in 2010 and officially listed on the Shenzhen Stock Exchange in 2021. It had already set its sights on the energy storage market two years ago. In June 2023, Kaller launched the "Chichi 233" fully liquid-cooled commercial and industrial energy storage product with a storage capacity of 233kWh, adopting a standardized modular design and targeting the user-side energy storage market.

In fact, whether it is Baosteel, Foxconn, or Kaller, it is not the first time they have "integrated" into energy storage. All three companies have previously been involved in the energy storage field, either participating in photovoltaic power generation projects or focusing on the user-side energy storage market. Their recent "simultaneous" establishment of energy storage companies is a further deepening of their energy storage sector layouts. This also reflects from the side that although the current development of the energy storage industry faces many challenges, its growth prospects are certain and sufficiently broad.

It's worth noting that not only have industry giants "integrated" into energy storage, but since the beginning of this year, large central and state-owned enterprises such as the State Energy Group, China Electrical Equipment Group, and China Energy Engineering Group have also entered the energy storage sector. According to relevant statistics, the number of central and state-owned enterprises entering the energy storage field has already reached more than 100. Some industry insiders believe that in the future, central and state-owned enterprises or some local groups may become the main force in the energy storage industry. There are also opinions that cooperation between local governments, state-owned enterprises, and private enterprises may become the major trend in the future energy storage industry.

Currently, in addition to investing and constructing energy storage projects as owners, many central and state-owned enterprises are actively building or have already put into production production lines for energy storage cells, packs, and system integration, and their businesses are rapidly expanding into upstream and downstream industries.

The energy storage track has long been overcrowded, with energy storage cell and system prices continuing to decline. In the face of overcapacity, competition in the energy storage field has already become white-hot. The energy storage divisions of leading battery companies such as CATL, BYD, Eve Energy, and Gotion High-Tech have become the fastest-growing and most promising segments for these companies, with their development accelerating and the leading effect becoming more pronounced.

Although companies like Foxconn, Baosteel Group, and Kaller have certain advantages in "integrating" into energy storage due to their similar businesses, industry reshuffling is accelerating. Facing the current extremely fierce market competition, survival of the fittest is inevitable. As for which new entrants will stand out and which will be eliminated, we can only wait and see.