Let me take you into the $620 billion market.

Bloomberg New Energy Finance (BNEF) released its Global Clean Energy Investment Report for 2018 at the beginning of this year, predicting that global annual energy storage installations would exceed 10 GWh for the first time in 2019. Despite the threat of trade wars, Chinese battery manufacturers are expected to establish truly global businesses, and international energy storage developers and integrators will turn to China to seek opportunities in the battery market.

Previously, BNEF predicted that global energy storage installations could reach 100 GWh as early as 2025 and surpass 300 GWh around 2030. By 2040, the global energy storage market is projected to accumulate to 942 GWh, with an estimated value of around $620 billion. As the share of renewable energy increases in the overall energy mix, energy storage can theoretically be applied wherever electricity is consumed. In the long term, the energy storage sector will be the largest application market for lithium batteries.

According to Benchmark Minerals Intelligence (BMI), an overseas professional institution, lithium-ion batteries are expected to be used in approximately 50% of emerging stationary energy storage markets by 2028. These energy storage systems will absorb surplus electricity from the grid, especially from renewable energy sources, and support residential and industrial power demand during peak periods.

According to the incomplete statistics from the China Energy Storage Industry and Technology Alliance (CNESA), the cumulative installed capacity of electrochemical energy storage projects in China reached 1,018.5 MW/2,912.3 MWh in 2018, which was 2.6 times the total capacity of the previous year. In energy storage applications, large-scale releases on the "grid side" and "user side" have become the primary growth drivers. By the end of 2018, the cumulative installed capacity of electrochemical energy storage globally reached 4,868.3 MW/10,739.2 MWh, with a year-on-year increase in power capacity of 65%.

In the past year, the Feida Group's 20 MW/160 MWh intelligent energy storage power station, deployed by the State Grid Zhenjiang Power Supply Company, leased by State Grid Jiangsu Integrated Energy Company, and invested and constructed by Tangtai Group, successfully connected to the grid. Tangtai Group also received the "Most Influential Award in China's Energy Storage Industry in 2018".

Tangtai Group entered the energy storage industry early on. At the end of 2011, when energy storage was still in its early stages, Tangtai established an independently accounting energy storage company dedicated to the development of the energy storage industry. Tangtai Power, a subsidiary of the Tangtai Group, stated that in 2018, Tangtai achieved battery shipments of approximately 160-170 MWh, with revenue exceeding 100 million yuan and order amounts surpassing 200 million yuan.

With the rise of the energy storage market, lithium iron phosphate (LFP) batteries, which had been losing momentum in the power battery market, have found new opportunities. Compared to ternary batteries, LFP batteries have absolute advantages in terms of cycle life, safety, and other aspects, making them a better choice for energy storage applications. Several years ago, when LFP batteries were used in the first batch of demonstration projects for the national smart grid construction, the industry predicted that if the technology demonstration went smoothly, LFP batteries would have a competitive advantage in large-scale peak shaving and frequency regulation energy storage projects in the future.

It can be foreseen that in the future, the shift of LFP batteries to the energy storage field, due to their characteristics of ultra-long life, safety, large capacity, and environmental friendliness, will extend the value chain, stimulate greater vitality, and promote the establishment of innovative new energy business models.