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Lithium Battery Cells Have Become the Mainstream of Grid Energy Storage Applications


Nowadays, lithium battery cells have become the mainstream of applications of energy storage, especially the grid energy storage, and will achieve a real large-scale explosive development in one or two market segments. It is estimated that by 2021, the total demand for lithium battery energy storage on the power generation side and the grid side will continue to rise.

According to research findings, in order to cope with the national power reform and relief the power supply pressure of power grid groups, the demand for grid energy storage projects with transformer-side transmission (distribution) power storage and industrial and commercial user-side energy storage as the majority has increased. From the perspective of bidding and implementation of energy storage projects, the use of energy storage systems with lithium battery cell as the support has become a mainstream choice for power grid groups and operators.

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1. The reason why lithium battery cells are adopted for grid energy storage

At present, the lithium battery cells for sale used in energy storage are mainly the lithium iron phosphate type. This time, the demand for grid energy storage has exploded, which will directly drive the demand for lithium iron phosphate battery. The main reasons are: first, the explosion of grid energy storage demand has provided a way to reduce production capacity for lithium iron phosphate batteries that cannot meet the new subsidy policy on new energy vehicle; secondly, within the recent years, as power battery companies have made improvement in terms of technology and cost, lithium iron phosphate batteries have cost-effective advantages compared to lead-acid and lead-carbon batteries.

2. Market development of lithium battery cells

Grid energy storage is driving the demand for lithium iron phosphate batteries. At present, many lithium battery cell companies that have signed energy storage projects are too busy because they have to start work in the fields of power and energy storage and production capacity at the same time. Small and medium lithium battery cell companies in the industry are seeking OEM cooperation. It is foreseeable that domestic grid energy storage will make a new market breakthrough for lithium iron phosphate batteries.

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